Selected works in new English translations. The writings of Friedrich Schiller, the great 19th-century poet, playwright, historian and philosopher, have inspired patriots and world citizens for 200 years.

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TIillContents

Interviews Political Economy Economics

6 Bogdan Pek 16 Colombian canal project 4 Poland's Gdansk shipyard The free market economic model is could thwart separatist plot is shut down on orders of a fallacy, says a member of The proposed Atrato-Truand6 IMF parliament from the Polish Peasant interoceanic canal could open up a In 1990, Lech Walesa, later Party. new era of economic development Poland's President, said that "Polish for Colombia, while undercutting sheep have lots of wool; foreign 7 Krzysztof Mlodzik the geopolitical schemes of the investors can come and cut it." This The regional chairman of the Upper British, the separatists, and the is what has happened during the last Silesia Solidarity trade union of United Nations. six years. miners and energy sector workers puts the stress on infrastructure as 19 Pugwash world federalists 10 Currency Rates the root of true reform in Poland. behind Uraba grab 11 Iran inaugurates rail link 21 Economic impact of the to revive the ancient Silk Departments canal project Road From a 1985 speech by ElR's Javier A blow is struck against geopolitics 57 Report from Bonn Almario. by opening the Mashhad-Tajan They are still not doing their job. railway connecting Iran to Turkmenistan. 58 Report from Rio Correction: MST opts for irregular warfare. In our June 7 issue, the 14 Business Briefs article "LaRouche: Impeach 59 Andean Report Pennsylvania's Gov. Ridge for 'Nazi-Like' Policies" contained an BBC's "Revive Shining Path" error on p. 65. The New England project. Journal of Medicine reported that 5 out of 186 medically indigent adults 72 Editorial studied, died after six months-at British ideology is an infectious least 3 of these directly due to lack disease. of health care. LaRouche used this figure, 3 out of 186, or 1.61 %, to estimate that 3,542 people would die in Pennsylvania in the first six Photo credits: Cover, pages 23, 35, months, as a result of Governor 41 (Murdoch), 65, EIRNS/Stuart Ridge's legislation. Lewis. Pages 5, 8, Anna Kaczor Wei. Pages 12, 17, 18, 20, EIRNS/ John Sigerson. Page 36, EIRNS/ Christopher Lewis. Pages 30, 32, USDA. Page 33, Harper and Row. Page 41 (Queen), Bundesbildstelle Bonn. I

Volume 23, Number 26, June 21, 1996

Feature International National

22 Maggie Thatcher's 40 British Crown lashes out at economics spread 'Mad LaRouche in Australia Cow' disease The sudden uproar "down under" is The spread of bovine spongiform not a domestic affair, but the encephalopathy, or BSE, is a reaction of the House of Windsor to textbook case of how radical "free Lyndon LaRouche's growing policy trade" economics leads to disaster. influence worldwide. Documentation: Excerpts from a 24 The scientific picture on radio interview by LaRouche with BSE: incomplete, but "EIR Talks" and from a press conference by Australian Deputy Demonstration by LaRouche campaign supporters at frightening the State Capitol rotunda in Harrisburg, Pennsylvania, Prime Minister Tim Fischer. June 4, 1996. 26 More work is needed to 44 The 'leftist' United Front develop BSE tests 62 'Impeach Ridge' campaign takes the helm aims to knock out the Nazis In India, the caution of the media The national significance of 27 How Thatcher ravaged and public about the new targeting the Pennsylvania governor U.K. infrastructure government, is based on the abject as a Nuremberg criminal, is that it failure of two past experiments, in may be crucial to getting Clinton 28 How Thatcherism led to 1977 and 1989, when anti-Congress reelected, and to freeing Congress Party forces had hatched a common BSE of the Conservative Revolutionaries front to take power. A timeline of events from the 1970s who are out to destroy the country. to the 1990s. 45 Indian elections: shifting 64 A resurgent AFL-CIO is 36 European backlash grows vote patterns key to defeating against London Conservative Revolution 48 Turbulence ahead for Documentation: From recent 37 The leading firms during Romania, Bulgaria speeches by AFL-CIO President BSE's spread John Sweeney. Corporate profiles of some of the 50 The strategic gambits top British companies in the behind France's 68 Congressional Closeup livestock feed business. 'Cheminade case,' 1990-91 78 National News 53 'Northern Venice' scenario set back in St. Petersburg

60 International Intelligence �TIrnEconomics •

Poland's Gdansk shipyard is shut down on orders ofIMF

by Anna Kaczor Wei

One could hardly find a better example to illustrate the dis­ Now, at Gdansk, the plan is to lay off 4,000 of the ship­ mantling of the Polish economy, than the decision of the yard's 7,000 workers immediately, and keep the remaining Polish government at the beginning of June to bankrupt and 3,000 at work for a transition period of 12 months only, to close down the famous Gdansk shipyard, where, 16 years ago, complete fivecommercial vessels that are under construction. desperate workers initiated a wave of strikes that spread all The yard is not allowed to sign new contracts, because, in over the country and brought to life the trade union Solidar­ the words of Privatization Minister Wieslaw Kaczmarek, that nosc, independent of the communist government. None of would make things even worse. those workers would have believed that their victory would The leftovers of the shipyard are to be carved up among eventually lead to this, although EIR warned them at that foreign investors. One of the candidates is the South Korean time against swapping the fully centralized economy for the company Daewoo, which has already bought out a Warsaw British-style free market and monetarism. In a discussion with automobile factory, and is talking about buying private pen­ Schiller Institute representatives in 1990, Lech Wales a, the sion funds and banks. Thus, the Gdansk shipyard will share chairman of the trade union, who later became Poland's Presi­ the fate of many other Polish enterprises, and Daewoo (if it dent, said that "Polish sheep have lots of wool; foreign invest­ becomes the new owner) will put more of its commercials on ors can come and cut it." And this is exactly what has been Polish TV saying, "It is so good to be with you!" happening during the last six years. Shipyard workers voted on June 4 to occupy the yard In its frenzy to privatize all industries, and thus to please in protest, and Solidarnosc leaders promised a country-wide its overseers at the International Monetary Fund (IMF) and action to back the shipyard. One could almost say, that the the World Bank, the Polish government,which owns 60% of last six years have brought Poland back to "square one." the shares of the shipyard, forced its bankruptcy by blockad­ ing all credits, supposedly due to the shipyard's high debts, Resistance grows although to a large degree they resulted from the govern­ Under these conditions, political resistance to the IMF ment's own financial policies of the last six years: interest program is growing. On May 9, deputies from the Confedera­ rates which are now 30-40%, and in the past reached even tion for an Independent Poland (KPN), the fourth-largest 90%; as well as high taxes, constituting 65% of the gross party in the Sejm (parliament), organized a press conference income of any industrial enterprise. Nevertheless, during the to further the debate over economic and foreign policy. Said heated debate over the fate of the shipyard, Polish Finance parliamentarian Wojciech Blasiak: "We demand that the for­ Minister Grzegorz Kolodko had the audacity to say that in eign policy of Poland take steps to free our country from the a free-market economy, it is the market that decides which dictate of the IMF! ...Also, looking at the situation in Russia: companies survive, and which ones go under. The IMF policy there is responsible for social tensions, which This was the same logic that led to the government's deci­ can become dangerous strategically, and unfortunately, West­ sion in May to privatize the mining sector, closing down 40% ern countries do not want to help Russia." of its capacity and firing90,000 of its 264,000 workers. That Organizing resistance to IMF austerity policies is a major program is supposed to be carried out by the year 2000. focus of the work of the Schiller Institute in Poland. The

4 Economics EIR June 21, 1996 A Solidarnoscdemonstration in front of the Sejm (parliament) in Warsaw, May i995. The freedom movement which gave rise to Solidarnosc has been betrayed, by successive governments ' capitulation to the international Monetary Fund's austeritydemands.

institute was officially registered in Poland in February, and II, the number of deaths was higher than the number of births, elected its national leadership in April. sparked, on the one hand, a wide discussion on the necessity Institute representatives met with many Polish activists for preserving at least a minimum moral code in economic in April and May, and found that when the idea of resistance activities, and on the other, a proliferation of books and arti­ to the IMF came up in discussion, the question often posed cles desperately trying to prove the validity of Adam Smith's was, "What will the American administration do, if we go theories in economics. against the IMP' s policies?" Many opposition forces-political parties, trade unions, None of the participants in those meetings had any illu­ church organizations-see the parliamentary elections in sions that Poland can implement free-market "reforms," and spring 1997 as an opportunity to take over the Sejm, change still have a growing economy and a decent standard of living. the government, and implement sane economic policies. Al­ The name of George Soros, the international financial specu­ though, of course, the international situation may change dra­ lator who is extremely active in intelligence operations in matically during the next 10-12 months, it is important to eastern Europe, and who came to Poland back in 1988 to prepare a program now for rebuilding the economy, and to promote free-market reforms, is considered by many as a consolidate all those groupings that oppose free-market re­ synonym for "a crook and manipulator." forms and would like to see the rebirth of national production. This is not surprising at all, since even officialgovernment This idea, of protecting and developing domestic industry, statistics show a demographic crisis in the country, and blame agriculture, and science, is the main point in many programs it on growing poverty, economic hardship, unemployment prepared by the opposition. among young people, and the fact that they have no hope for Unfortunately, the task of fightingthe IMP' s shock ther­ a better future. In a 1995 report titled "Social Policies: Present apy is hindered by an influential fifth column of free-marke­ State and Perspectives for the Future," the authors rang the teers, steered and financed by, among others, the Soros Foun­ alarm bells over decreasing life expectancy, deteriorating dation, the Ford Foundation, the World Bank, and the British health conditions, and malnutrition (for example, 20% of Po­ Know-How Fund. These foreign outfits maintain a grip over lish children are malnourished). According to the Main Statis­ the mass media, some parties, universities, and so-called tics Office, already in 1994, earnings of 50% of the Polish think-tanks. society were below the social minimum, and 20% of rural For that reason, the anti-IMF forces look with concern at families hardly had any means to support themselves, due to the situation in the United States and western Europe, hoping the collapse of agriculture. that the Western governments will soon take the first step to The fact that in 1995, for the first time since World War reverse the present disastrous policies.

EIR June 21, 1996 Economics 5 market reforms and start implementing such programs as Interview: Bogdan Pek the Euro-Asian land-bridge, which we have discussed many times? Pek: I would like to stress one thing: The free market eco­ nomic model which has been imposed on us by certain political groups, big financial institutions, various groups Freemarketeconorrtic from Western Europe as well as the mass media, is a sort of intellectual fallacy. First of all, because there is no free market, especially in Europe. European Union countries use model is a fallacy free market rhetoric, they talk about the freeflow of capital, information, investment, free trade, but, in reality, they use Pek is a member of parliament, from the Polish Peasant various protective measures to secure their interests, such Party (PSL). He was interviewed by Anna Kaczor Wei in as tariffs, quotas, and so forth. This also relates to the inter­ Wa rsaw, on May 9. ests of the huge supranational corporations, and we have no idea where their real controllers are. EIR: During our last meeting, we discussed Lyndon The second matter: objective circumstances in which we LaRouche's Presidential campaign, and the debate it has live and the necessity of improving the Polish economy, sparked in the Democratic Party, around such people as demand that we pick one solution and think through what Senators Ted Kennedy, Tom Daschle, and others. Do you final goals we want to achieve. While working on a model think that this debate could help you in Poland to escalate for the future, we have to think about Poland's place in discussion about the disastrous effects of free market re­ various international and military structures .... forms? One has to carefully study all the proposals which are Pek: We have to be honest with ourselves, that, although presented to Poland, in order to make a strategic decision Poland is in Central Europe, a country with 40 million inhab­ on following issues: Do we want to join a European com­ itants and over 1,000 years of history, it is not strong enough monwealth, which is forming one state called "Europe"? to influence world politics. Any change, any effort to reject Shall we support the idea of a federation of Euro-regions? concepts that have been popularized over many years, will Or do we want to have a Europe of the Fatherlands, which be possible if the kind of ideas, which you just mentioned, means an association of nation-states that keep their sover­ win in the U.S. and among big powers. Is it possible? It eignty, at least to some degree? The Polish Peasant Party will not be easy, but it is important that such a debate has and I definitely support this last option. started at last, and that serious politicians are starting to talk We are aware of the fact that the world financial system about such problems; and secondly, that LaRouche is no is described by some as a blown-up, speculative bubble: longer isolated in his pursuits, that he is starting to get Only a small percentage of foreign exchange constitutes a wider political recognition. All these are, in my opinion, turnover of physical goods, and over 90% is a speculative positive signs. turnover of obligations, bonds, and that sort of transactions. I think that much depends on the economic situation in This makes it difficult to decide what the right choice is the U.S., and a relationship between a united Europe and for Poland, because this situation creates a framework that America, as well as on the situation in the countries of the Far limits us. East, China, Japan, and so-called "Tigers" [the economies of Although I would like to say something good, I must Thailand, Korea, Taiwan, etc.]. If there are further signs of a admit that, till now, as a state, we have not formulated a global economic collapse, it will be much easier to convince model, which would take into consideration our national voters in the U.S. and western Europe of the necessity for interests. This is due to how our governments have been philosophical change in the whole economic model. working, as well as our parliaments, including this one, where, in my opinion, the majority thinks more in suprana­ EIR: When we were meeting with you in Krakow, Mr. tional than national terms. LaRouche was in Moscow, where he participated in a meet­ ing with Russian economists [see EIR, May 31, 1996]. Many EIR: I have a question concerning privatization of Polish of them criticized the policies of the International Monetary economy. EIR readers have already had a chance to learn Fund (IMF) and free market reforms. One can also sense a about terrible effectsof free market reforms in Poland, espe­ deep disillusionment with the West among the Russians, cially privatization. Could you say something about your who feel threatened and cheated. In such a situation, all the personal involvement in combatting some of these bad priva­ talk about NATO expansion is only heightening the tension tization policies? inside Russia. Would you agree that a better way to secure Pek: There is no doubt that ownership restructuring is a stability in this part of the world is to stop Darwinian free key element of reforms, now under way in Poland, and I

6 Economics EIR June 21, 1996 must say with regret that, till today, the way this process state administration, health care, and social security systems has been going on is far from what PSL would accept, and are also important. Instead, we started with matters which with what would be congruent with rationally understood should have been reformed at the very end. reason of the state, considering all external and internal I can illustrate this problem. The Balcerowicz Plan as­ conditions. The present coalition of SLD and PSL came to sumed that coal mining would serve as an anchor, holding life as a result of 1993 elections, when both parties' election down inflation. Balcerowicz liberated prices from the control programs advocated an introduction of significant changes of the administration for all the enterprises related to coal in the process of privatization: for example, reviewing trans­ mining. They started to function on a free market basis, while actions which had been concluded up to that point; reviewing the price of coal stayed fixed. Mines had to buy supplies and them in an honest, Christian way, drawing conclusions and machinery at free market prices, which led to huge debts. making those who were guilty of serious mistakes in the As a result, coal mining has been falling into a ditch. past take responsibility. In my opinion, the only thing those reforms achieved After the elections, it turned out that the SLD, which was to fill up shops with foreign goods, which people had has taken over the ministry of ownership restructuring in no money to buy. There was a special tax on excessive the person of Minister Kaczmarek, not only lost interest in wage increases, leaving enterprises afraid to increase wages any significantchange, but even created obstacles, prevent­ beyond a fixed limit, since that would force them to pay a ing the possibility to review what had happened in the past. tax, which they could not afford. So, there were goods on In practice, we see a continuation, with few modifications, the market that people had no money to buy. From this of this line, which we criticized so strongly, and which is comes a saying: "Western prices, Eastern wages." identified with Minister Lewandowski. This is a liberal, Presently, we are wading in the same direction. So far, supranational line that does not consider negative effects of no governmenthas had the guts to start reforms by improving ownership restructuring, and, above all, does not take into infrastructure: That would mean removing bottlenecks to account a certain phenomenon, which I call the shrinking allow capital to move, developing railroads, highways, etc. of sovereignty of the Polish state. And, we have plans to build highways, but, at the same time, we are selling our cement plants. Another thing about privatization: I always point out to the chairmen of the coal mining companies, and the minis­ ters: "What sense does it make to sell enterprises which are Interview: KrzysztofMlodzik making a profit? You should privatize those entities which have losses. Foreign capital should go there, to modernize the coal mines, the textile industry, which has collapsed, or former state farms." Instead, they sold "Wedel" [a well­ True refonn begins known confectionery factory], and now plan to sell copper mines. The National Investment Funds consist of the best Polish enterprises [that are being privatized]. with infrastructure I blame our governments for not representing the inter­ ests of the Polish state. Instead, they surrendered to the diktat Mr. Mlodzik is the regional chairman of the Upper Silesia of others. In the discussion with the representative of the Solidarity trade union of miners and energy sector workers. World Bank, we accused him of trying to control us. He The fo llowing is abridged from his interview with Anna denied it, saying, "No, we only propose things, and you Kaczor Wei in Katowice on April 23. agree." I did not have any arguments to counter him, because he was right: If our government did not utter a word in EIR: What is your analysis of the Polish economy aftersix opposition, then World Bank people can claim that we sim­ years of free market reforms imposed by such institutions ply accept their propositions. as the International Monetary Fund (IMF)? What I learned from organizing as a trade unionist-I Mlodzik: I think this question should be directed to the have been active in the political life of our trade union for prime ministers, who headed the Polish governments from seven years-and from studying economics at the university, 1989 on. I can talk about this as a trade unionist and a meeting various people, including abroad, allows me to say citizen, who observes various enterprises, especially coal that everything is moving in the wrong direction. President mines and power stations. Our economy is being drained; Kwasniewski, who promised a lot during his campaign­ we did not start our reforms with what should be considered building new apartments for people, creating new jobs­ first, that is, building infrastructure, which we discussed will have big problems with young people, because there earlier [at a Schiller Institute seminar], namely railroads, will be no new jobs, if the present policy is continued, communication systems, highways and so forth; reforms in because it reduces work places in production! You may have

EIR June 21, 1996 Economics 7 jobs in services, but you need somebody to serve! Therefore, You just have to evoke in people the same enthusiasm as you need production. our parents had in 1945: They often worked for free, because If we close coal mines, then not only will mines come somebody gave them a vision for the future. It will be under the hammer: In industries related to coal mining, there difficult, for the reasons which I have mentioned already. are three or four workers employed per miner. A coal mine When I was in the United States, I was asked what I needs machinery, assembly lines, water; there must be fu ll think about American internal debts. I told them that­ shops for miners and their families. If you close a coal mine, comparing internal debts in the U.S. and in Poland-the then you force the closure of 40 other enterprises, according U.S. will only bend to its knees under such a debt, but to our estimations. Poland will collapse on its face, and never get up. You will But if they succeed in putting down the miners and get up, because there is no comparison between Poland and energy workers, nobody else will be able to stop them. We the U.S. If we sink into a spiral, in which our internal debt are aware that in every trade union, in every country, coal is to be controlled, not by our representatives, but only by miners are the most vigorous force, because mining requires financial circles, then we will become slaves! solidarity, effort, involvement, and some sacrifice. Those I try to explain to people, that in a democratic system, people can take humiliation and poor treatment for a long involvement in politics should not be disregarded. In a totali­ time. But when this solidarity comes up to the surface, it tarian system, one could neglect it, because things were becomes such a strong wave, that it overflows and tears controlled by a party secretary. But now, one has to think apart everything in its path. You can direct it in the right politically: If we do not do it, if we do not think, do not get way, but also in the wrong one. In Romania they used it in involved, do not use principles of democracy, then others the wrong way: The political authorities got the workers will use our passivity for their purposes. Take an example: to come to Bucharest and start trouble. We experienced In Oswiecim, my hometown, with 30,000 people, one candi­ something like that under the Gomulka regime, when work­ date to a local government was elected with just 68 votes! ers were used against students. We do not use principles of democracy! What our predeces­ However, when our people take over the government, sors from the trade unions won, we are losing now. they will have to be tough, too; there will be no other choice. We do not have much, but production still has to go on. EIR: What do you think about the question of Polish mem-

A giant flea market takes over the main square in Warsaw, June 1995. "In my opinion, " says Mr. Mlodzik, "the only thing the reforms achieved was to fillup shops with fo reign goods, which people had no money to buy. "

8 Economics EIR June 21, 1996 bership in the European Union? there are many obstacles on our way. Mlodzik: We should not lose our national identity. I look The biggest problem is not how to implement this idea, at the EU the same way as Comecon in the past. [Comecon, because it is right, but how to change people's mentality or the Council for Mutual Economic Assistance, was the and morality. Our Cardinal Wyszynski said in 1980: "One Soviet-dominated trading bloc-ed.] Perhaps the principles can change a political system with one stroke, one election; of the EU are better and wiser, but I do not believe that we an economic system within a few years; but to change the will join it. morality of people, takes generations." And this morality I would consider joining the Union when Poland is was destroyed by the communist system, and the system stronger economically; it would not be good to join it as a that exists in the West; because it happens that morality was pauper. After all, we have to fu lfill certain conditionalities; destroyed on both sides, although in different ways, there for example, inflation has to be below 10%. Poland would are forces which want to destroy this morality. Cardinal need between five and seven years to achieve this, with Wyszynski said those words in 1980, but they are as valid great difficulty, and only if nothing cracks before, which is today. So, the work ahead of us is very hard and laborious. possible. The second condition is the elimination of tariffs, I like LaRouche, because, in my mind, he chose the best but that immediately kills our agriculture. If Western coun­ foundation for the whole global economy. But let's not fool tries subsidize their agriculture, and we don't, because of ourselves: This is directed against certain people who want the promotion of market economy, then we will end up eating to keep finances for themselves and promote theories, that eggs from Ukraine, bread from Germany, and tomatoes from are no longer so popular. Sweden, because our farmers will be producing at higher But good has been always fighting against evil, although costs! I agree with what [Schiller representative] Mr. Frank Hahn If we join the Union after all, our situation will be even said that, currently, the idea of the good has been traded for worse than in Greece. Recently, at a trade union conference the idea of profit. Indeed, this is what has happened here: in Luxembourg, unionists from Greece presented a very We often think in terms of profit and loss, rather than good bleak picture. The Scandinavian countries are not very or evil. happy, either. When I was in Sweden last year, trade union­ ists from outside Stockholm were wearing signs "I voted EIR: During the meeting I mentioned before, we also talked NO," against joining the Union. Stockholm residents voted about the debate inside the Democratic Party and AFL-CIO, for joining; those outside Stockholm against it. whose members you had met in the U.S. Do you think that, I will not talk about military structures, but this matter if Americans criticize free trade, the Poles should use this also influences the situation. I don't think we are ready at fact to combat market reforms here? all to join them. Our knowledge, as trade unionists, leads M1odzik: Of course, we live in a time when we have to us to this conclusion. explain to people the necessity of constant education and keeping in touch with world events. However, we have a EIR: During the meeting with the Schiller Institute repre­ problem inside trade unions. When I was in the U.S., I sentatives, today, we discussed the election campaign of proposed that we organize a debate on the following subject: Lyndon LaRouche. Would you agree that his economic pro­ "Why is the idea of trade unions diminishing among work­ gram for Eurasia, would help to solve the crisis? ers?" This is happening everywhere: In the U.S., only 20% M1odzik: I think LaRouche's philosophy is consistent with of miners belong to unions, and in general only 16 or 17% what I have said earlier. I was talking about the necessity of workers are in unions. Despite this, AFL-CIO is still the of building infrastructure in one country, while LaRouche largest trade union in the world. I fear that now we are losing deals with this in terms of whole continents. It was a surprise, some of the gains that have been won by trade unionists that there is a man who thinks not only in terms of his own in the past. I told the American unionists that it is their state, but in terms of whole continents, and the whole world. responsibility to organize a conference on this subject, be­ If something works on a micro-scale, in one country­ cause they are strongest financially. Trade unionists from the idea of starting with building infrastructure, such as all over the world would participate, and I am convinced railroads, which are like an irrigation system for the whole that starting from this theme, "Why the idea of trade unions economy-then it must work for whole continents. I think is diminishing among workers," they would come to the this is the right approach, and now we should think what same conclusions as LaRouche. methods should be used to implement it, or what pressure In newly established enterprises in Poland, during the we could exercise to get it done. present economic changes, there are no trade unions. It is I see a big possibility for trade unions in the U.S. and a jungle ! You can introduce whatever you want there, be­ Europe, including eastern Europe, to work out a strategy cause you can always say to a worker, "Your replacement and establish one front for action. I think that the truth is waiting, and for less money!" I saw these problems with always comes out with great effort at the beginning, and American coal miners. Their employer would say, "You

EIR June 21, 1996 Economics 9 don't like it? No problem, I'll hire somebody else!" You can see the same mechanism here now, although we have Currency Rates trouble mainly with our government, while in the U.S., the government is, in a sense, an ally of labor. I was in OSHA The dollar in deutschemarks [the Occupational Safety and Health Administration], where New York late afternoon fixing it was the U.S. government that introduced laws regulating mine safety, not private owners. 1.80 But if we, trade unionists, do not unite, then the American owner, who pays a U.S. miner $3,000 a month, will come 1.70 here and offer $800 ! And then he will tell the American unionist: "Why should I pay you so much? They will do 1.60 the same for $800 !" In Poland, $800 is quite a lot, but in the U.S., it is hardly unemployment benefits. So, just as 1.50 capital is uniting, we trade unionists have to become more 1.40 united. A working man wants to get enough money to support his family, provide all the necessaries, and also to save for 4124 5/1 5/8 5/15 5122 5129 615 6112 the future. The dollar in yen In addition, I have heard about a concept, claiming that New York late afternoonfixing it would be better if there were fewer people on the Earth­ and less problems with it, supposedly. But this is against 140 God, against Christian principles, and the word of the Bible. If we surrender to this passively, we will be guilty as well. So, I agree that the role of the Schiller Institute is to 120 make people aware of what is going on, but I would not count on quick results in easternEurope, because this awareness is 110 very limited. In the Katowice voivodship [the province which comprises Upper Silesia], 60% of the working people have only basic education [8 years] ! Only 7% of the popUlation 4124 5/1 S/8 5/15 5/22 5129 615 6112 have a university degree [after 5 years], while in western The British pound in dollars Europe the number is 30-40% ! New York late afternoonfixing Going back to wages: A Polish miner gets $350-400 a month, while in Ukraine, it's only $50! and this is where 1.80 Poland's coal will come from. I am not afraid of American coal. They asked me about it in the United States. I said: 1.70 "Thank God, we are separated by the Atlantic, and it takes some money to transport over this huge ocean." But coal 1.60 can come from Ukraine, because they only get $50 there, so, if somebody invests in Ukrainian coal, and gives them 1.50 I- $100, they will work till they drop dead. This can be a threat to us. 1.40 So, as trade unionists we have to invest in educating 4124 5/1 5/8 5/15 5/22 5/29 615 6112 people, training them. It is a duty of the government and The dollar in Swiss francs private owners to create new jobs. It is not a duty of a trade New York late afternoonfixing union, although some unionists think so. To conclude: I think one can connect those two ideas, 1.60 for strengthening trade unions and building infrastructure. I would try to convince [AFL-CIO President] John Sweeney 1.50 to realize this concept. I have learned a lot from two board 1.40 members of California's AFL-CIO. They had a lot of com­ ments about the state of trade unions today. They have a 1.30 tremendous experience! It is my dream to invite them to

Poland, so that they can share this experience of 60 years 1.20 of work in unions. They are now 80 years old: This is a 4124 5/1 5/8 5/15 5122 5/29 615 6112 mine of knowledge!

10 Economics EIR June 21, 1996 Iran inaugurates rail linkto revive the ancient Silk Road

by Hussein Al-Nadeem

In a major strategic development in Central Asia, 12 heads of a summit meeting on cooperation in economic development state and representatives from 50 nations attended the inaugu­ and trade. The ECO, although short of finances, established a ration ceremony of the Mashhad-Sarakhs-Tedzhen (Tajan) trade and development bank, a reinsurance company, and a railway in northeast Iran on May 13. Connecting Iran with joint airline company. Turkmenistan, this 165-kilometer rail line is a crucial link to revive the ancient Silk Road. Countering Britain's 'Great Game' This ancient trade route used to transport silk, gold, spices, The Silk Road is also important as an element for political and other valuable products from China to Europe, but has stabilization in the Middle East, the Caucasus, Central Asia, been inoperative since the 13th century following the Mongol and the Asian subcontinent. These regions have been invasions. The route remained closed for over 600 years, in­ wracked, since the middle of the 19th century, by regional cluding as a result of British imperial policy beginning in wars, civil wars, and other political and military conflicts, all the 17th and 18th centuries, and later because of the British­ resulting from GreatBritian ' s regional geopolitical strategies orchestrated Cold War. The completion of the project has historically known as the "Great Game." Since the 1970s, the finally made reala long-awaited dream of connecting Russia region has been plagued by the modem form of this Great and the land-locked Caucasus and Central Asian states to the Game, the so-called "Arc of Crisis," devised by Anglo-Amer­ warm-water ports of the Persian Gulf and the Indian Ocean. ican strategists, including BernardLew is and Sir Henry Kis­ At the same time, it now connects Asia with Europe singer. In the last century, the Great Game was aimed at pre­ through one network of rail lines extending from the Far East, venting the Russian Empire from reaching India, then a on the Pacificcoasts of China and Japan, through continental colony of the British Empire. Today's Arc of Crisis shares Central Asia, Iran, and Turkey, to the western-most point the same purpose: preventing any real economic development of Europe on the Atlantic coast. Another line is now under across Eurasia. Today, as then, transport of goods from Asia construction in Iran to connect the same network via southeast to westernEurope is done over the seas, predominantly under Iran, Kerman-Zahedan, to Mirjaveh on the border with Paki­ the control of British companies. stan. Thence, to Southeast Asia and the Far East through India. A clinical specimen of what the British, still today, are This project will open a new phase of economic coopera­ passionately scheming, is the reaction which came out from tion among the Middle East, the Caucasus, and Central and British media and political institutions, such as Chatham East Asia. Iranian President Ali Akbar Hashemi Rafsanjani House (the Royal Institute of International Affairs) and the said at the inauguration ceremony: "Today we open a railway International Institute for Strategic Studies in London. Their in cooperation with our friends in Turkmenistan which revi­ line is, that there will emerge an Iranian-Russian conflictover talizes the historic Silk Road, which is famous as a symbol of the wealth of Central Asia; Iranian-Turkish control of the East -West relations ....It shortens the long distance between Caucasus and Turkish-speaking Central Asia; conflict be­ Chinese ports to the Persian Gulf, is the bridge for the region tween the United States, which "wants to strangle the mullahs and the world." economically," and Iran-a Hobbesian world of "each At the ceremony, Turkish President Suleyman Demirel against all." One can expect new schemes to be hatched in said, "An historic legend comes to life. The Silk Road was not London in an attempt to make such conflicts a reality. The only about a route but was about the coming togetherofvarious bare truth is that Russia, Turkey, and Iran will, to a large nations." In the same vein, Chinese Prime Minister Li Peng extent, share the benefits of the Silk Road equally. For the described the railroad as "the Silk Road for the 21 st century." first time in modem history, the question is whether Russia Following the ceremony, the Presidents of the member­ will be able to connect its transport network to the Persian states of the Economic Cooperation Organization, comprised Gulf and the Indian Ocean without having to go to war. of Iran, Turkey, Pakistan, Afghanistan, Turkmenistan, Uzbe­ The construction of major infrastructure projects and de­ kistan, Kazakhstan, Tajikistan, Kyrgyzstan, and Azerbaij an, velopment of these regions compels these nations to solve left Sarakhs for Ashkhabad, the capital of Turkmenistan, for their political conflicts peacefully and to free themselves of

EIR June 21, 1996 Economics 11 New rail lines build the 'Silk Road of the 21 st century'

K A Z A K H S TAN

. • • •

A • :" N • ......

SA U 0 I ARABIA

Existing main rail lines

-- Newly completed rail line

Proposed new rail routes

12 EIR June 21, 1996 British geopolitics. A glance at a map demonstrates that al­ 4. Last year, Iran inaugurated the Bafq -Bandar Abbas most every regional conflict lies astride key infrastructure railway. This, together with a planned Mashhad-Bafq-Bandar nodal points. For example, the bloody Afghanistan civil war Abbas rail way, which will shorten the route by 900 kilometers prevents linking Pakistan and India with Central Asia and compared to the detour through Teheran, would give Turk­ Russia. One significant sign of the potential for peaceful reso­ menistan and the rest of the Russian-Central Asian grid a lution of conflicts, was the statement by President of Pakistan more direct route to the shores of the Persian Gulf and the Farooq Ahmed Leghari, at the inauguration ceremony. Indian Ocean. Leghari expressed hope that Iran will work with Pakistan to 5. A railroad from Kerman to the Chah Bahar port on the conclude a peaceful end to the war in Afghanistan. He also Gulf of Oman is now under construction. urged Iran to mediate in the conflict between Pakistan and These railroads will not merely serve as means of trans­ India around the Jammu and Kashmir problem. porting goods and passengers across Eurasia, but will be the The Iranian government, meanwhile, urged Azerbaijan backbone for development in the region. They serve as supply and Armenia, which are at war over Nagorno-Karabakh, to lines for other infrastructure projects along the Silk Road. settle their problems, to make it possible to reactivate the Transport of raw materials and energy needed for industry railway which can link the Iranian rail network to the Geor­ and agriculture could easily be supplied to infrastructure and gian Batuman port on the Black Sea. Mediation efforts are industrial projects along the Silk Road. Major trade, industry, being pushed to stop the struggle in Tajikistan between the and cultural centers will be built along these rail networks. government and opposition forces. The problems between Sarakhs, once a forgotten and deserted oasis lying on the Iran and Turkey emerging from the military activities of the edge of a vast desert, has become the heart of a transcontinen­ Kurdish Workers Party in southeast Turkey must be solved. tal crossroads, with an internationalairport and a major mar­ These are some of the real issues that have to be dealt with, if keting center. Two major reservoirs are under construction to development and peace are to be achieved. This must be the the south of Sarakhs and northeast of Mashhad, to turn the last station for the Great Game. New relations based on eco­ vast arid area on both sides of the Silk Road railway into nomic cooperation and partnership among the nations of these cultivable land. Most of the deserts, extending from northeast regions must be installed in its place. Iran to Central Asia, contain the potential for agro-industrial development. The New Silk Road is the key element for that Details of the New Silk Road project development to proceed. 1. Inaugurated on May 13, the Mashhad-Sarakhs railway is the firststage of a bigger project being implemented by Iran to link the Transcaucasian-Central Asian rail grid with that of Iran, which in turn is connected to the Turkish grid in the west. Thus, Iran would be a key center of the Eurasian land­ bridge comprising a network of railroads from Beij ing to So, Urumqi in north China, Almaty in Kazakhstan, Tashkent in Uzbekistan, Ashkhabad in Turkmenistan, Teheran in Iran, You Wish and to Istanbul, Turkey, which is already in place. 2. The second phase of the project is the completion of a To Learn railway from the northern Iranian city of Mianeh, to Astara, across the border into Azerbaijan on the western coast of the Caspian Sea, and from there to Baku, and eventually to the All About Russian network. When completed, this would become the shortest route between Moscow and the Persian Gulf and the Econontics? Indian Ocean. Today, there is an inactive railway that goes from Tabriz in northern Iran, through Nakhichevan, the Azeri by Lyndon H. LaRouche, Jr. enclave in Armenia, to Yerevan, and from there it splits to the A text on elementary mathematical north, to Russia, and to the west, to Istanbul, via north Anadol. economics, by the world's leading economist. 3. On the southern line, another railway between Kerman Find out why EIR was right,. when everyone and Zahedan in southeast Iran is under construction. This one else was wrong. is intended to connect the Iranian rail network to Pakistan, at Order from: the border city Mirjaveh. From Pakistan, a network of rail­ ways extends through India to Bangladesh, and eventually to Ben Franklin Booksellers, Inc. 107 South King Street Leesburg, VA 22075 all of Southeast Asia. The transport of goods and passengers from Southeast Asia and the Indian subcontinent via Kerman­ $10 plus shipping ($1.50 for first book, $.50 for each additional book). Bulk rates available. Information on bulk rates and videotape Teheran-Istanbul to Europe, and also to Russia and the Cauca­ available on request. sus, and vice versa, would be possible.

EIR June 21, 1996 Economics 13 Business Briefs

Sp ace veloped AIDS, even if they had no sores, firstquarter, budget revenues were 35 trillion bleeding, or abrasions on their mouth or rubles, as against 71 trillion planned. Hard Gennany, Japan step gums. In fact, the experiments showed the currency reserves will have to be used to pay dosage necessary to infect the monkeys internal debt. up collaboration orally was 6,000 times lower than that re­ In the May 3 I-June 7 issue of Pravda- quired for rectally induced infection. The 5, Democratic Party of Russia leader Sergei On May 14, representatives of the German team found that it only takes 830 times more Glazyev explained that the government is Space Agency and the National Space De­ virus to get an oral infection than a direct financing Yeltsin's spending spree with velopment Agency of Japan reached agree­ injection of the virus into the bloodstream, short-term commercial borrowings, at even ment on German participation in a 1997 Jap­ the most efficient method of transmitting higher interest rates: "In the interests of ma­ anese mission which will demonstrate the AIDS. jor financial institutions, the Ministry of Fi­ docking and rendezvous of an unmanned sat­ This discovery confirms the danger nance has sharply raised interest rates on ellite. warned of by Lyndon LaRouche and his as­ state bonds, which means a corresponding Japan's Engineering Test Satellite-7 sociates back in 1985. Despite the new evi­ increase in budget expenditures to cover consists of two satellites launched together. dence, Ruprecht, an immunologist, contin­ these obligations, with interest, during the In orbit, they will separate, and a chaser ues promoting the politically correct line that second half of this year. The widespread spacecraft and a smaller target spacecraft this does not mean that AIDS can be trans­ practice of direct funding of state spending, will drift apart and then rendezvous and mitted by "casual contact." "Our results in by superhigh-interest commercial bank dock. A robotic arm aboard the chaser satel­ no way imply there is a danger from casual loans, goes inthe "Same direction... " . With lite will be used to capture the smaller tar­ contact. And by that we mean hugging, kiss­ such manipulations of state spending, ac­ get satellite. ing, sharing spoons, drinking water from complished by the sleight-of-hand artists at Germany has agreed to contribute a fountains, sharing cups and glasses and so the Ministry of Finance, to the enormous ground station to the ETS-7 mission, which on," she said. She claims that danger of trans­ benefit of the commercial organizations will be built in Japan's Tsukuba Space Cen­ mission stems from "unprotected" oral sex. standing behind them, and all this under ter. The robotic arm will be manipulated cover of the campaign to pay the back wages, from the ground station. it may be that the June wages for budget­ Germany and Japan also discussed the sector employees are the last they get this possibility of German experiments being Russia year; all budget revenues in the second half placed on the Japanese space station plat­ will go to pay obligations to the creditors." form. Klaus Berge, the German Space State finances set to Agency's managing director, told Space News that Germany would also like to install collapse after election a medical instrument inside the main Japa­ Philippines nese space station module. The Russian state bond market is headed for total collapse, Viktor Usoltsev wrote in Overseas workers prop Pravda Rossii of May 30. Domestic banks, the main investors, are pulling funds out of up economic picture Health the market. On April 17, three- and six­ month notes worth $1.2 billion were sold, The so-called "tiger economy" of the Philip­ Oral transmission of while over $1.4 billion was paid to cash out pines is riding on backs of workers exported old ones. The governmenthas been using the overseas, first-quarter figuresfrom the Presi­ AIDS virus confinned short�term borrowings, to cover the budget dent Fidel Ramos administration and a May deficit-as President Boris Yeltsin dishes 11 survey by the London Economist showed. Dr. Ruth Ruprecht and colleagues at Dana out money on the campaign trail, although EIR reported this situation in its Jan. 19issue. Farber and the Tulane Regional Primate Re­ wage arrears have still not been paid in According to the survey, which lauds the search Center published a study in the June many regions. free trade-privatization program of Ramos, 7 issue of the journalScience, that shows that At the April 17 auction, interest rates on the Philippines is today the leading exporter AIDS is more easily transmitted orally than the state's three-month notes were raised of labor, with 4.5 million people working through anal sex, the Wa shington Post re­ from 92%, up to 121 %. On the six-month abroad. In 1995, Overseas Contract Worker ported. notes, the average rate went from 165% an­ (OCW) remittances rose to $4.7 billion by In the process of studying how infants nually, to 180%! Despite such rates, at the official account, but, when "informal chan­ are infected with AIDS, they examined po­ April 24 auction the Ministry of Finance nels" were included, the total was more than tential infection through the mouth. They placed one-third less in bonds than it had $6 billion, which approaches 30% of total placed a solution containing the simian planned. export earnings for the year. counterpart to the human immunodeficiency The state's own financial pyramid is An estimated 2 million of the total 4.5 virus (HIV, which causes AIDS), on the about to crash, Usoltsev wrote. The new is­ million OCWs are illegal aliens, subjected tongues of rhesus monkeys. Six of seven de- sues are not covering the payments. In the to harrowing conditions. In the last decade,

14 Economics EIR June 21, 1996 Briefly

EDUCATION of the children of China's migrant workers is a big chal­ an increasing number have been women, Germany lenge. About 2 million children fail to working as domestics, nurses, or "entertain­ go to school after their parents mi­ ers." Of those working as maids in Hong­ Construction enters grate to big cities. "More and more kong, one-third have some level of univer­ people come to the cities but ignore sity education. 'deep recession' their children's education," an offi­ Socio-Economic Planning Secretary cial of the State Education Commis­ Cielito Habito admits that what a recent "We have entered a deep economic reces­ sion said. International Monetary Fund review team sion," Christian Roth, national president of called the first-quarter "fruits of reform," the association of German construction JORDAN received a loan of $100 reflected in a 6.2% upturn in GNP, is due firms, said about the construction sector, million from the Kuwaiti Arab Fund entirely to OCW remittances and the service German media reported on June 7. for Social and Economic Develop­ sector, while manufacturing and the still With a record 6,000 bankruptcies in ment on June 3, the first to be given dominant agricultural sector have stag­ 1995, construction is heading for another to Jordan by Kuwait since the Gulf nated. bleak year. Especially in eastern Germany, war against Iraq. The loan will be al­ where the special, five-year tax rebates for located to complete the third stage of construction projects expire at the end of upgrading the Aqaba power genera­ June, more than 10,000, largely undercapi­ tion plant in south Jordan. Finance talized small and medium-sized construc­ tion firms are on the verge of collapse. BELGIAN TV covered the interna­ Another institution Last year, more than 100,000 jobs were tional speculative bubble on June 9, eliminated, and another 120,000, if not more, in a report on a strike at a Belgian fails in Japan will most likely be lost this year. company, protesting layoffs planned by the company to adapt itself to the Shin Kyoto Shinpan, a credit institution globalization of the markets. Only a based in Kyoto, has declared bankruptcy tiny percentage of the hundreds of bil­ with some $3 billion in bad debts, sending lions in worldwide money flows has shock waves through Japan's financialmar­ Great Britain to do with exchange of goods. The kets. The Bank of Japan is playing down the program shows a clown blowing up a collapse, the eighth financial institution to Reduced global role balloon, which finally explodes. fail in 18 months, by saying that its creditors forecast by Treasury are large, stronger banks, so there is no risk. AIDS WILL KILL 100 million Af­ But, according to sources, this latest bank­ ricans in the next 30 years, under ruptcy puts the spotlight once more on an un­ An internal report of the British Treasury present birth rates, according to a resolved political situation of Japan's huge Ministry forecasts that Britain's role in the forecast of the U.S.-based Population bad bank debts from the 1980s real estate world will be significantly reduced, accord­ Research Council, reports in the May "bubble economy." ing to the June 6 London Financial Times. issue of the monthly journal of the "The Kyoto Shinpan collapse is being The report, and its leaking to the press, is part German Foundation for World Popu­ used by politicians to renew pressure on the of a propaganda effort designed to downplay lation Research. private banks to pay their share of the bad the vast global power of the British Empire, debts their lending created, rather than the which is being reorganized around the Brit­ INDONESIA'S National Atomic taxpayers paying via state bailout," the ish Commonwealth. Energy Agency Deputy Director Iyos source said. "But there is another huge debt The warning,part of a survey on compet­ Subki said the scenario of potential problem, the $274 billion debt of the Japa­ itiveness is based on the fact that there is danger to Australia in the event of an ' nese National Railway. This debt is far a "skills gap" between the United Kingdom accident at its proposed nuclear reac­ larger than the Jusen debt of the housing and competitor economies. Within the next tor in Java, was "totally impossible," companies. The problem is that sale of Ja­ 20 years, the British will fail to qualify not the June 1 Sydney MorningHeraldre­ pan Rail land was to have paid down the only for membership in the Group of Seven ported. debt, but such huge sales in central Tokyo (G-7), but also lose their world role in the and such areas is impossible without trig­ leading internationalinstitutions, such as the COPPER prices crashed 15% in gering a new real estate collapse crisis for United Nations, International Monetary two hours on the London Metal Ex­ the banks, meaning the government might Fund, and World Bank. change on June 6, in what was de­ have to assume that debt on its books. Add Britain's fate will be shared by France scribed as record hectic trading activ­ to this the stalemate in resolving the $6 and Italy, as they are replaced by China, In­ ity. George Soros's Quantum Fund billion to finance the Jusen bailout, and it's dia, Brazil, and Indonesia as the strongest and the Tiger Fund were cited by the clear the Bank of Japan will be paralyzed for economic nations early in the next century. London Financial Times as the insti­ months from tightening its extraordinarily Of today's G-7 members, only the United gators of the maneuver. easy 0.5% money policies." States, Germany, and Japan will remain.

EIR June 21, 1996 Economics 15 �TIillPoHtica1Econom y

Colombian canalpro ject could thwart separatistplot

by Javier Almario andCa rlos Wesley

The national debate provoked by the frequent massacres car­ tected in Bosnia, in which thousands of Muslims were massa­ ried out by narco-terrorists in the Colombian region of the cred by the Serbians, under the "protection" of UN troops. Gulf of UraM, took an unexpected tum on May 22, when President Ernesto Samper Pizano proposed the building of Bedoya draws the line vs. separatism the Atrato-Truando interoceanic canal as a solution to the The polemical statement made by Army Commander isolation and violence afflictingthe region. While it is highly Gen. Harold Bedoya Pizarro on April 12, changed the course unlikely that Samper's proposal is anything but an attempt to of the debate. Bedoya affirmed: "If we continue to allow for­ divert attention from the narco-scandal in which he is em­ eigners to tell us how to protect our borders, we shall lose broiled, still, the placing of a spotlight on the canal project is UraM, just as we lost the Panama Canal. Any country in the most useful. EIR and the friends of Lyndon LaRouche in world would be interested in the UraM region, and if we Colombia have supported this ambitious development project Colombians continue to play their game, we'll lose the Atrato since the early 1980s, as of great benefitnot only to Colombia, canal. ...The Europeans have their sights trained on UraM." but to the whole world (see below). General Bedoya's statement was correctly perceived by But in UraM today, the United Nations and the non-gov­ the UN, its NGOs, and such allied think-tanks as the Washing­ ernmental organizations (NGOs) are using the continuous ton, D.C.-based Inter-American Dialogue, as a direct chal­ massacres carried out by the Colombian Revolutionary lenge to their separatist game plan. In response, they have Armed Forces (FARC), and its counterparts in self-defense attempted to publicly humiliate Bedoya, and to force his resig­ units or among allies of the Peace, Hope, and Freedom group nation as Army commander. However, their attempt has back­ (EPL), as a pretext to promote the British imperial strategy fired. A debate called in the Senate by Sen. Omar Florez, for of demanding the presence of UN peacekeeping forces, and the purpose of subjecting General Bedoya to ridicule for his fostering separatist sentiment in UraM, with the argument statements, instead proved the correctness of his assertions. that the national government "is unable to protect the civilian It turned into a debate on proposals for the development of population." Comparisons between UraM and Bosnia-Her­ the Gulf of UraM region, which borders Panama, and inter­ cegovina are appropriate here. sects the departments of Choco, Antioquia, and Cordoba, the For over a year, Alvaro Uribe Velez, governor of Antio­ latter currently a victim of narco-terrorist violence (see quia (in which Uraba is located), advised by Harvard Univer­ Figure 1). Among the charges which the participating senators sity professor Roger Fischer, a supporter of the idea of trans­ made, was that General Bedoya's statements had negatively forming the UN into a supranational world government (see affectedColom bia's relations with the European Union. box, p. 19), has demanded that UN "blue helmets" be de­ Rather than weakening Bedoya, the Senate debate ployed into the UraM region. An army of NGOs is already in strengthened him. Support for his statements ranged from UraM. Pax Christi International, for example, has proposed leftists such as Jaime Dussan, to conservatives such as Luis the creation of "neutral zones where the civilian population Guillermo Velez. Velez stated that, in fact, the Colombian will reside," similar to those which the UN supposedly pro- Army had not been defeated by the guerrillas, but that NGO

16 Political Economy EIR June 21, 1996 activity had caused the Army to lose the war "in the United FIGURE 1 States, Germany, Spain, Italy, and Holland." Defense Minis­ Colombia's Uraba region ter Juan Carlos Esguerra also had to support Bedoya, explain­ ing that the general's disputed statement referred to numer­ CARIB,BEAN ous, primarily European NGOs, that seek foreign intervention in UraM by ignoring the national government and "going above the law." Esguerra also explained that the general's SEA remarks referred to the federal government's rejection of "the proposal to bring the UN's blue helmets in to pacify UraM, made repeatedly by Antioquia Gov. Alvaro Uribe Velez, who, V ENEZ U E L A fortunately, will not propose it again. Rest assured that in UraM, the only soldiers patrolling, will be those wearing the helmets of the Colombian Army, and the helmets worn bythe • Mede�in .' sailors of the National Navy," Esquerra told the senators. The debate clearly implied that the presumed opposing forces, responsible for the massacres in UraM, are manipu­ , .-_. ; ."( lated by foreign interests for the purpose of justifying a for­ ', Cali eign intervention-whether a military intervention using UN troops, or those of UN members, or through UN interference in the region, or even in the whole country. With the exception of the communists, spokesmen from across the political spec­ trum represented in the Senate, told the F ARC and the EPL "not to play into the hand of foreign interests." ECUADOR

British geopolitics: the Bentham plan BRAZIL This British strategy for UraM is not new. For more than three centuries, Great Britain has had its sights trained on PERU Panama and UraM, and in different periods of history, it has succeeded in getting the United States to back its cause, through ideological or cultural manipUlation. Since the tum of the century, U.S. foreign policy has in large part been based on British geopolitics of the 18th and 19th centuries. When fromMexico, through Central and South America,including U.S. President Teddy Roosevelt said in 1903, "I took Pan­ the Antilles-everything south of the United States. ama," and seized Panama from Colombia, he was implement­ Bentham's Junctiana was to have been a new state, ing a plan first developed by Jeremy Bentham (1748-1 832), through which the canal would be built, with the involvement the founder and firstdirector of Britain' s intelligence service. of a company financed largely by British investment. The Bentham's plan for Spanish America, was to take control state, however, was not intended to be Spanish-American,but of the outlets of all the navigable rivers, the islands critical would rather be called the Anglo-American United States. to navigation, and the Panamanian isthmus, as a means of According to Bentham, neither Colombia nor Mexico was imposing imperial control over the entire region (Figure 2). capable of providing the necessary security to protect these For this reason, the British seized the Malvinas Islands, tried investments, because, as he put it, having become indepen­ to take the Rio de la Plata region, seized Jamaica, took posses­ dent so recently from such a bad form of government, they sion of Guyana, with the intention of controlling the deltas of were in constant danger. The habits and culture of a large the Orinoco and Esequibo rivers, and used several islands as portion of society, he said, were not of the required level. the headquarters of various pirate groups which, like the Bentham's idea was that the canal company would bring FARC and ELN guerrillas today, sabotaged trade and looted in profits by collecting tolls from users, charging the same and destroyed physical infrastructure. amount to everyone. The proposed route was through Nicara­ In 1822, Bentham wrote his "Junctiana" proposal, a plan gua. However, he said, Mexico shouldn't try to build the to build a canal connecting the Pacific and Atlantic oceans. canal, because this would anger Colombia. Nor should Co­ The canal was to have been built on land seized from Mexico lombia try to build the canal, because this would anger Mex­ (in what is today Nicaragua), and would have bordered on the ico. Junctiana should have good legislation, a good judiciary, north with Mexico, and on the south with Colombia. Ben­ and good government. In reality, this implied and presup­ tham's ally in these plans was American traitor Aaron Burr, posed that the territory of Junctiana would be part of the who intended to become the ruler of a slave empire extending Anglo-American United States. It would have two port cities,

EIR June 21, 1996 . Political Economy 17 FIGURE 2 The Caribbean region

.. UNITED STATES , AT LAN TI C

OCEAN

" o

one on either end of the canal, which would be replicas, in Capt. Augustus Lloyds, employed by Colombia, succeeded miniature, of "the civilized world." The people residing there in convincing the liberator, Simon Bolivar, to let him explore would be officials of the supervisory classes, civilian and Panama, to establish a possible route for the canal. He re­ military leaders, who would appreciably increase the value turned,proposing a route that would divide the Panamanian of the active population, and the circulation of wealth in the city of Bahia Limon in half-virtually the same route as the territory, starting as soon as the project began. current canal. Except for the fact that Bentham's proposed route was According to Colombian historian Eduardo Lemaitre through Nicaragua, what he wrote was a perfect description (Panama and Its Separationfrom Colombia), the British tried of what eventually became known as the Panama Canal Zone, to establish a beachhead on the Central American isthmus. right down to the Gold Roll and the Silver Roll. (In the Canal They took Belize (from Guatemala), and succeeded in con­ Zone, U.S. employees are distinguished from native employ­ trolling the Mosquito Coast in the northern part of Central ees, such that there are actually two different payrolls. Until America. The British pirate Francis Drake had previously relatively recently, they frequented different coffee shops, made incursions into Portobelo (Panama), while Henry Mor­ sent their children to different schools, used different water gan attacked the old city of Panama. We call these individuals fountains and bathrooms. The names Gold Roll and Silver pirates, but to the British, they are known as Sir Henry and Roll referred to the fact that, originally, Americans were paid Sir Francis. England also tried to get Panama to declare its in gold dollars, while the natives were paid in silver dollars. independence from Spain, by supporting an Indian chief Now that there aren't any gold or silver dollars, there is simply named Andres, whom the British called the "King of Darien a difference in wage levels, by which Americans are compen­ and sovereign of Panama." In 1780, Lord Nelson was ordered sated for suffering the "rigors" of work in the tropics.) to take Lake Nicaragua, known as the "Gibraltar of Spanish Bentham, of course, also wrote books on other topics: In America." Defense of Usury, and In Defense of Pederasty. Seeking control over a route between the two oceans, in As early as the 17th century, the British attempted to con­ 1845 the British solemnly crowned an Indian "King of the trol the Darien Gap, connecting what is now Panama and Mosquitos," with the name of Robert Charles Frederick I. Colombia, through a colony established by William Patter­ They then landed him at Bahia Almirante in the Panamanian son, who subsequently founded the Bank of England. British province of Bocas de Toro, and from then on, proclaimed

18 Political Economy EIR June 21, 1996 themselves "protectors of Indian rights." In contrast to British imperial designs, the current Colom­ bian Senate debate on UraM put a spotlight on the vast devel­ Pugwashworld federalists opment potential of this region, making it clear that any in­ vestment in the region would be to the benefit of all behindUrab a grab Colombians. Recalling the plans for building the Atrato­ Truando Canal, several senators from the Antioquia region Two leaders of the UraM separatist project are pupils discussed the need for deep-water ports, railroads, and high­ of a brainwashing project set up in Antioquia, Colombia ways. Investment figuresin the range of $1.5-15 billion were in 1995, by Roger Fisher's Harvard Negotiations Pro­ mentioned. There was talk of a "Marshall Plan" for UraM. ject (HNP). Antioquia Gov. Alvaro Uribe Velez, and Gloria Cuartas, mayor of Apartado, both advocates of A commission created supranational oversight of UraM enforced by UN blue On May 22, President Samper, desperate to findanything helmets, have been principals in Harvard's "Pedagogy to boost his popularity, and echoing the Senate debate, pro­ of Tolerance" project since Fisher opened its firstsemi­ posed the building of the Atrato-Truando Canal. His govern­ nar in Medellin on April 24, 1995. ment has already ordered the creation of a commission made An internationallaw expert and an adviser to Robert up of the finance, communications, transportation, economic McNamara' s U.S. Defense Department in the 1960s, development, and national planning ministers, to determine Fisher is one of the leading architects of the post-Ken­ the best route. nedy, post-industrial global paradigm shiftdirected by Whatever Samper's motives, the debate generated by his British intelligence's psychological warfare division, proposal has revived dormant hopes, especially among the the Tavistock Institute. His "working assumption," he inhabitants of Choco, Antioquia, and Cordoba. But it has also argues, is that "conflictis an inevitable feature of social activated old enemies of the canal project, such as Samper's life"; the only issue is, who will "manage" it. political godfather, ex-President Alfonso Lopez Michelsen, Through his Harvard center, Fisher directed the cre­ also known as "the Godfather" of the drug trade. ation of an international apparatus of experts in "man­ At the beginning of the 1980s, co-thinkers of Lyndon agement" of conflict,as an instrument of the world-fed­ LaRouche, as well as some national institutions, mobilized eralist lobby created by Britain's evil Lord Bertrand around the proposal to build the Atrato-Truando Canal. In Russell. It was Fisher who, in 1961, set up the Council 1984, the Colombian Fusion Energy Foundation, an organi­ for a Livable World, for Russell' s mad scientist aide, Dr. zation inspired by LaRouche's economic policies, together Leo Szilard, to serve as the U.S. branch of Russell' s one­ with the Bogota chapter of the Colombian Society of Econo­ world-governmenteffort, the Pugwash Conference. mists, the Colombian Geographical Society, and Sen. Daniel Fisher's current program in Colombia is a two-year Palacios Martinez, created the Pro-Atrato-Truando Civic project whose stated goal is to train 40,000 people (local Board. governmentofficia ls, teachers, trade unionists, civic ac­ That same year, Senator Palacios introduced a bill giving tivists, etc.) in "sociological techniques" and "pro­ the President extraordinary powers for a four-year period, to cesses of negotiation, dialogue and peace." The 40,000, create a mixed-capital company (public and private), for the each sent out to tutor others, is considered sufficientto purposeof building the canal, and to dictate whatever changes reshape the nation. The site chosen by the Harvard team were necessary to attain that goal. The bill was passed by the for their project, was Antioquia, one of the departments Congress in 1984. In August 1985, the organizations belong­ of which Uraba is a part, and where the drug cartels first ing to the Pro-Atrato-Truando Civic Board organized an inter­ established their grip in Colombia. national conference to promote the new law. Ramtanu Maitra, Joining Fisher as a "professor of tolerance" in the of EIR 's bureau in India, attended representing Lyndon first phase of the Colombian program WflS ShafikHan­ LaRouche, and explained the latter's world infrastructure pro­ dal, the veteran head ofEI Salvador's Communist Party gram, including the proposed building of the Kra Canal in and unrepentant advocate of armed struggle, who di­ Thailand. rected the Farabundo Marti Liberation Front's war At that conference, EIR presented a study of the economic against his nation for decades. Handal is also a product benefitsColombia would derive from building the canal. EIR of Fisher's behavioral training. The Conflict Manage­ presented the old studies done by the U.S. Army Corps of ment Group set up by Fisher in the 1980s, the subgroup Engineers in the 1960s. In studying 30 possible routes for of the HNP which runs the Antioquia project, played a the building of a new interoceanic canal, the Corps of Engin­ central role in establishing the current UN dictate over eers considered the Atrato-Truando route among the best EI Salvador. "We advised and trained both sides in the (Figure 3). war between the government and the opposition Already at that time, the Panama Canal was considered FMLN," CMG literature brags. obsolete, since it could only handle 60,000-ton ships, while

EIR June 21, 1996 Political Economy 19 FIGURE 3 Proposed route for the Atrato-Truand6 Canal

'. ---.

C A R I B B E A N

S E A

, .J , I , " ,

PA C F C

o C E A N

A

- Conventional excavation • II. N uclear excavation

250,000-ton tankers were navigating the globe. The U.S. costly. At the time that these studies were done, in Colombia, Army Corps of Engineers recommended the peaceful use of the Institute of Nuclear Affairsand the Institute of Hydrology nuclear energy as a means of building a new canal. It was and Meterology were established. estimated that 19 nuclear explosions would be required, along Today, the United States has developed small fission 26 kilometers of rocky mountains; along the remaining 185 bombs which can be used for such purposes, and from which kilometers, conventional excavation technology could be the risk of any contamination is minimal. It is also now possi­ used. The canal would have a good two-way course, at sea­ ble to blast through the mountains in question by using me­ level (without locks), and would operate year-round. chanical "moles," like those used to build the tunnel across In one of its southern deserts, the United States built an the English Channel. In this case, there would be a 26 km experimental canal to test the method of excavation by small tunnel, accommodating a canal deep enough for today's nuclear explosions. It also studied wind patternsin the Atrato­ largest vessels. Truand6 region, to determine at what time of the year explo­ This type of project could only lead to an explosion of sions could be carried out without risk to human beings, and economic development and cultural optimism, while unifying also what areas would have to be evacuated prior to the explo­ and integrating the Colombian nation, now so mortally threat­ sions. The possibility of using conventional explosives was ened by separatism, narco-terrorism, and the advocates of debated, but it was determined that these would be more one-world government.

20 Political Economy EIR June 21, 1996 Steel was chosen, because there is coking coal in the region, and it can be transported from other regions as well. Water is an excellent means of transportation for imported iron ore, for coking coal, and for movement of finished steel. Since this is a steel-producing region, a modem heavy ECononllchnpact of machinery industry should also be built. The combined effect of the building of the canal, and related industries, would the canal project be a 7.2% annual growth in 1995, and 6.6% in the year 2,000. To this growth, we should add the growth spurred by by JavierAlmario the industries supplying the canal zone, that is, the industries located elsewhere in the country which will provide inputs for the steel and cement industries, as well as other industrial The fo llowing are excerpts from a presentation given in inputs, for housing construction and for workers' consump­ August 1985 at a fo rum on the proposed Atrato-Truand6 Ca­ tion in the canal-construction zone. Plastics, glass, and nal, held in Bogota, Colombia. The meeting was convoked by machinery production must be doubled, cement production the Colombian Societyof Economists, Bogota and Cundina­ quadrupled, and steel production increased tenfold. Thus, marca chapter, along with the Colombian Fusion Energy our growth will reach 9.5% in 1995, and 8.1% in the year Foundation, and the Colombian Geographic Society. Thefull 2000. title of Mr. Almario 's speech was "The Impact of the Con­ Finally, if the building of the Atrato-Truand6 Canal is struction of the Atrato-Truand6 Canal on the Colombian combined with modernization of all national infrastructure, Economy. " all productive and consumer goods industries will grow. This would lead to a doubling of production in basic consumer ...Let us look at the effect that construction of the Atrato­ industries, in their demand for machinery, capital goods, Truand6 Canal would have, if we began construction in 1986 electricity, raw materials, and other inputs. Thus we arrive ... and also consider its effect on economic growth for the at an annual growth figure of 12.8% for 1995, and 11.7% years 1995 and 2000. We assume that Colombia would only for the year 2000. import heavy construction equipment and other elements indispensable to the effort, but that cement, steel, and similar Hundreds of thousands of new jobs goods, as well as labor power, would be supplied by the Co­ The other point is the employment generated by the build­ lombian economy itself. ing of the canal: 10,000 jobs directly, and another 20,000 Looking at the proposals for creation of new cities and indirectly, in related activities, were the building project to industries in the area surrounding the canal, we get the follow­ use nuclear explosions. The use of more traditional technolog­ ing picture: 5 million tons of steel-producing capacity; a lum­ ies would generate 24,000 jobs directly, and 30,000 indi­ ber and sawmill industry ten times the size of the current rectly. Fifty thousand construction workers would be needed national industry; a chemicals and petrochemicals industry for building new cities and industries. Some 250,000 indus­ 3.5 times the currentnational capacity; a leather and plastics trial workers would be employed directly in new industries in industry equivalent to current industrial levels; a huge alumi­ the canal area. num production plant that would multiply production of non­ One hundred thousand agricultural workers are needed ferrous metals tenfold; a new industry of electrical and non­ for work in the Atrato valley, to fell trees and plant new for­ electrical machinery equivalent to the capacity of current in­ ests; between 200,000 and 225,000 industrial workers would dustry; and a transport vehicle industry 1.5 times current pro­ be needed for the industries that would supply the canal zone, duction levels. at productivity rates 25% higher than current rates for indus­ The Atrato River valley and bordering regions could pro­ try. Add to this, other jobs created throughout the economy, duce a large quantity of wood that could be efficiently trans­ to build other infrastructure. Take as a baseline, industrial ported by the Atrato and other rivers. Chemicals and petro­ productivity rates 25% higher than current ones. chemicals are chosen, because they are products that greatly In the manufacturing sector, there would be a total of benefit from water transport to and from the factory. There is 1.575 million new jobs, an extraordinary leap, if we take oil in the region for the petrochemical industry, but Colombia into account that there are currently only 475,000 industrial needs to produce more of these products anyway. An alumi­ workers, according to figurescompiled by the DANE statisti­ num plant is proposed, because maritime transport makes the cal agency in its annual survey. Industrial employment will import of bauxite from Venezuela and Jamaica that much grow by 300%. easier, and energy for the plant could be generated with coal These are some of the benefits to be derived from the from Colombia's Cerrej6n, and fromnuclear and hydroelec­ building of the Atrato-Truand6 Canal, not counting the reve­ tric energy. nues collected fromusers ' tolls.

EIR June 21, 1996 Political Economy 21 TImFeature

Maggie Thatcher's economics spread 'Mad Cow' disease

by Marcia Merry Baker and Jonathan Tennenbaum

Seldom do you see such an open-and-shut case of what is wrong with British "free­ market" economics. "Mad Cow" disease (bovine spongiform encephalopathy, or BSE, a fatal degenerative condition of the central nervous system) made its first appearance in England in 1985-86; its subsequent spread-affecting 162,000 cows in the British Isles over a 10-year period-is directly connected to the deregulatory economics of the Thatcher policy years. This disease outbreak is occurring in the context of a general process of destruc­ tion of the human race's biological defenses. The unchecked combination of AIDS and drug-resistant tuberculosis, and the return of classical epidemic diseases such as cholera and malaria in many parts of the "Third World," are exemplary. We are witnessing a collapse in worldwide investment into essential water and sanitation systems, public health care, insect control measures, immunization programs, and so forth-parallel with falling material living standards for the majority . of the world's population. Radical deregulation and globalization policies, together with the looting -of the base of world agriculture by the food cartels, are also very significant factors in the growing danger of a global "biological holocaust." Thereby, we are greatly multiplying the potential routes for spread of plant, animal, and human diseases, while creating epidemiological "weak links" and "forcing cultures," stimulating the emergence of new diseases. In the Feature that follows, EIR provides a detailed record, from the 1970s to the 1990s, of what was known about the risk potentials present, including economic cofactors, for disease outbreak in the United Kingdom; and, given the situation, what Mrs. Thatcher and her cohorts did, or did not do, in their free-trade "revolu­ tion." Their record shows criminal culpability. In brief, both before and during the 1979-90 years of Thatcher' s prime minister­ ship, infectious animal by-product from British slaughterhouses was recycled­ without being decontaminated-into the livestock feed chain. The recycled offal included sheep remains, from flocks known to have scrapie (the sheep and goat

22 Feature EIR June 21, 1996 Which one is the Mad Cow ?

form of transmissible spongiform encephalopathy, TSE), and low pressures, low fuel costs). "Market forces" must be free cattle remains. to decide what animals eat. In 1986, the first official case of BSE was recorded in Exactly who are the "industry" and "market forces" re­ England. The consensus among veterinarians and epidemiol­ ferred to? The prominent companies and individuals involved ogists, is that tainted feed was a leading cofactor. Yet, tainted are all from the top echelons the House of Windsor's financial feed mix continued to be distributed, and was exported. In empire. The companies include : Unilever PLC, the Anglo­ 1990, the first BSE case occurred abroad; by 1996, over 384 Dutch food cartel company, whose subdivision, BOCM Sil­ official cases were recorded, in 10 countries, where tainted cock, was a top 1980s British livestock feed merchant; Pros­ feed, or live cattle, had been exported from Britain. per de Mulder Ltd., which in the 1980s owned over 70% Only in 1988 did the Thatcher government make BSE a of all rendering in the United Kingdom; British Petroleum compulsorily notifiable disease. In 1989, six thousand BSE Nutrition, one of the world's largest commercial feed compa­ cows were reported in the U.K.; in 1990, thirteen thousand; nies in the 1980s (and owner of Purina Mills, the largest U.S. in 199 1, twenty-fivethou sand; and in 1992, thirty-seven thou­ feed company, until 1993); Dalgety PLC, now the single sand (the peak year). Only in 1988 did the Thatcher govern­ largest commercial feed company in the U.K.; its subdivision ment issue a ban on recycling U.K. animal wastes into live­ is food supplier to McDonald's restaurants in North America. stock feed; but it was not enforced. Moreover, after tainted When Agriculture Minister Walker resigned in 1990, he feed products were banned at home, Britain more than doubled became a director of Dalgety PLC, and joined the board of exports of bone meal and other abbatoir by-products for feed. the newly deregulated British Gas. Thatcher's deregulation This chain of events was set in motion in September 1979, and privatization extended to all kinds of infrastructure and four months after Thatcher became prime minister, when her vital services, gutting the physical economy. In 1992, Walker cabinet decided to set aside 1978 draft proposals for tighten­ was named Lord Walker of Worcester, MBE, PC (royal ing animal feed standards. This deregulation continued when, Privy Council.) in 198 1, Minister for Agriculture, Fisheries, and Food Peter What now? The BSE scandal-with new questions raised Walker signed the "Diseases of Animals (Protein Processing) concerning possible transmissibility to humans-has pro­ Order," which allowed tainted feed practices to expand. voked new opposition to "London economics" among the The rationale given was straight free-trade dogma: The European Union countries. There is a resurgence of healthy rendering and feed industry has the right to self-regulate. It nationalism over citizens' rights to safe food, and other neces­ must be free to use the least costly methods (low temperatures, sities. Below is a report on this fight.

EIR June 21, 1996 Feature 23 The scientific picture on BSE: incomplete, but frightening

by Jonathan Tennenbaum

Judging from its characteristics and probable origins, bovine them in the same category with maedi-visna (a viral infection spongiform encephalopathy belongs to a fairly well-defined of sheep), and HIV-associated AIDS in humans today. Both family of transmissible diseases in humans and animals, the maedi-visna and HIV viruses can cause progressive brain whose chief manifestation is a progressive, invariably fatal disease, among other manifestations. There are important dif­ destruction of brain tissue. The term "spongiform" refers to a ferences, however. peculiar, sponge-like quality of the brain lesions produced by these diseases. Unusual features of scrapie Until the first discoveryof spongiform encephalopathy of While searching for a virus as suspected infectious agent cattle, in Great Britain in 1985, this family of diseases had of scrapie in the 1950s, D.R. Wilson, I.H. Pattison, and others attracted attention mainly in two guises: first, a widespread discovered several surprising and disturbing facts, which illness in sheep, called scrapie, which had been known as a have significant implications for the problem of BSE today. major problem in flocks of sheep in Europe since at least Firstly, it was found, that brain extracts of diseased sheep the middle of the eighteenth century; and second, a group of remained infectious even after treatment by various of the hitherto extremely rare brain diseases of humans, including methods used to sterilize instruments, medical preparations, especially Creutzfeldt-Jakob disease (CJD), Gerstmann­ and food products. This extraordinary degree of resistence to Straussler-Scheinker disease (GSS), and kuru. In both cases heat, chemicals, and even intense ultraviolet light, suggested it had proven very difficultto determine the causes and mode the possibility, that these diseases might be connected with an of propagation of these diseases. infectious agent of a fundamentally new type. This conclusion In the case of scrapie, it can often happen, that only a gained some support through the finding, that infected ani­ single animal in a herd is affected; genetically transmitted mals display no detectable immune reaction to the agent trans­ factors are assumed to play an important role. Major out­ mitting the disease. (Indeed, according to one of the leading breaks of scrapie in the past oftencorrelate with a prehistory hypotheses being pursued today, the infective agent of scrapie of excessive inbreeding, or of breeding practices aimed at and related diseases is not an ordinary virus at all, but a mere rapidly expanding the numbers of animals in periods of "high protein-a naturally occurring protein, whose characteristics market demand." have been modifiedby a change in its spatial conformation.) Nevertheless, it was demonstrated in the 1930s, that Secondly, in 1961 Pattison and Millson published the re­ scrapie can be artificially transmitted, by injecting small sults of experiments, showing that scrapie could be transmit­ amounts of brain tissue from diseased animals, directly into ted to sheep by the oral route, through ingestion of as little as the nervous system of healthy animals. Later it was demon­ 100 ml of scrapie-contaminated brain emulsion. Other exper­ strated that CJD, too, possesses some sort of transmissible iments have shown, that the transmissible agents of scrapie agent. D. Carleton Gajdusek and others succeeded in transfer­ are not only concentrated in the brain, but can also be present ring Creutzfeldt-Jakob disease to chimpanzees, through in­ in other organs of the body, albeit generally in very much jection of brain tissue extracts from human CJD victims. The smaller concentrations. chimpanzee disease could subsequently be retransmitted Thirdly, scrapie was shown to be transmissible to other among chimpanzees, by the same means. animals, initially including goats and mice, thereby producing Such experiments also demonstrated, that the typical la­ a fatal, degenerative brain disease analogous to that in sheep. tency or incubation period for scrapie and other transmissible These and later experiments of cross-species injection, encephalopathies-the time from initial infection until the pointed to the existence of a so-called species barrier, which, first appearance of symptoms-can be extraordinarily long. however, is not absolute, but depends on such things as the In cases of accidental hospital transmission of CJD, by trans­ dosage of infectious material and the method chosen to intro­ plants or contaminated surgical instruments, the incubation duce it (by injection or otherwise). period can extend to 30 years ! For this reason, scrapie and These results, obtained in Great Britain during the 1950s CJD were provisionally termed "slow virus" diseases, placing and 1960s, together with the results of related research in

24 Feature EIR June 21, 1996 other countries, would obviously cause one to be wary of the healthy sheep by oral administration of suspensions of brain practice of "recycling" sheep remains in the form of feed tissues from scrapie-affected sheep. However, transmission supplement, unless the treatment process involved were sure of scrapie to other species, by the oral route, has proven much to deactivate the scrapie agent. Nevertheless, quite the oppo­ more difficult. A different picture is emerging for BSE. A site attitude prevailed in British practice, especially fromlate recent issue of the British Veterinary Record reports experi­ 1970s on. ments, in which a spongiform encephalopathy was induced When the first cases of BSE appeared in the mid-1980s, in scrapie-resistant sheep by oral consumption of the equiva­ the striking similarity with scrapie was immediately noticed. lent of 0.5 grams of brain tissue from BSE-infected cattle. The obvious hypothesis suggested itself-an hypothesis Mice have been successfully infected from BSE in a similar widely, but not universally, embraced among researchers to­ way. Furthermore, following the outbreak of BSE in British day-namely, that BSE was initially the result of a species­ cattle, spongiform encephalopathies began appearing in En­ barrier "passage" of the scrapie agent, via "recycling" into gland for the first time in cats (68 cases as of August 1995) feed supplement for cattle. and in a variety of zoo animals (21 cases), in which this type Quite apart from the hypothesis about a possible "species of disease had not previously been observed. Evidence points jump" origin, there was every reason to expect (as has been to the conclusion, that these are cases of oral transmission via confirmed by subsequent investigations), that BSE shares BSE-contaminated beef products. many common biological features with scrapie, including the These data, while not all fully corroborated, do suggest existence of a transmissible agent, the high degree of resis­ that the infective agent of BSE is more easily transmitted to tance of that agent to normal sterilization procedures, and the other species, than that of scrapie. possibility of transmission via the oral route. Hence, it should To this must be added the reported appearance, in En­ not have been difficult to guess, what would result from the gland in recent years, of at least 10 cases of a form of practice of recycling the cadavers of BSE-afftictedcattle, in­ Creutzfeldt-Jakob disease apparently never observed before. cluding their brain tissue, to healthy cattle, via rendering In contrast to the usualform of sporadic CJD, which mainly methods which fail to deactivate scrapie-like agents. In view infects elderly and middle-aged persons, this variant form of the scientific results quotedabove, permitting such recy­ has struck young patients (mean age, 26.3 years), and causes cling of cattle remains can only be described as an extreme a clearly different pattern of brain lesions. Although by no form of criminal negligence. This "cannibalistic" practice al­ means proven, the possibility must clearly be considered, most certainly was the main factor in the rapid, epidemic-like that the new form of CJD has been caused by a transmission spread of BSE after �985. to humans, of the agent of BSE. Clearly, BSE-contarninated material must be rigorously excluded from human con­ Is there a danger to human beings? sumption. This leaves open the critical question, whether there is a significantdanger to human beings, from the consumption of Mad politicians-more dangerous meat and other products fromBS E-infected cattle. An appar­ than mad cows! ently strong argument against such a danger, is suggested by As frighteningas the BSE outbreak and its possible effects the observation, that human beings have been eating the meat on human health might be, there is every reason to believe of sheep a very long time, and have doubtless been exposed that the BSE problem itself can be brought under control. countless times to scrapie via the oral route. Scrapie has often Indeed, measures taken from 1988 on, including especially been rampant among sheep herds in Europe, and normal cook­ the prohibition of further "recycling" of sheep and cattle re­ ing can hardly be assumed to have deactivated the scrapie mains into cattle feed, have already produced a drastic fall in agent in all cases. Despite this, there is hardly a trace of a the rate of new BSE cases, beginning 1993. Even if significant correlation between lamb consumption and the incidence of numbers of people were to eventually develop CJD-type ill­ Creutzfeldt-Jakob and other forms of spongiform encepha­ ness as a result of BSE exposure-a "worst-case" hypothe­ lopathy in humans. The latter incidence remains exceedingly sis-it would seem highly unlikely that this would lead to a small-generally of the order of one case per million popula­ sustained epidemic involving direct transmission from person tion per year. This would seem to point to the existence of a to person. In all known diseases of this type, including scrapie, very large "species barrier" protecting human beings from BSE, and CJD, such "horizontal transmission" is exceedingly infection by scrapie. rare, under normal circumstances. On the other hand, the reassurance offered by this argu­ Unfortunately, we are not living under "normal circum­ ment rests on the assumption, that the potentials of transmis­ stances." The main danger we face is not from this or that sion of BSE are practically identical to those of scrapie. Un­ disease, but from the epidemic of criminal negligence, which fortunately, recent research points to some significant made such things as BSE possible. If the policies of Thatcher­ differences. ism are tolerated much longer, then BSE could be a mild taste As noted above, scrapie can readily be transmitted to of things to come.

EIR June 21, 1996 Feature 25 and Dr. Clarence Gibbs at the National Institutes of Health, National Institute of Neurological Diseases and Stroke, in Bethesda, Maryland. They discovered that CJD in humans (or scrapie in sheep; or SSE in cows) leads to a form of brain More work is needed damage in which two proteins normally found only in the brain (protein 130 and 131), are found also in spinal fluid. to develop BSE tests They developed an antibody test for 130 and 131 in the spinal fluid, which takes two days to get results, and is technically by Carol Hugunin simple enough to be done in hospitals and clinics. These two proteins· can be found in patients who have herpes encephalitis, a virally induced disorder. Since herpes "Mad cow," scrapie in sheep, Creutzfeldt-Jakob disease encephalitis is clinically a very differentdisorder from CJD, (CJD), and similar degenerative conditions in humans, are this testing method opens up the possibility of solid diagnosis all forms of spongiform encephalopathies. The nature of the of CJD well before the patient's death-a necessity for any disease-malformations of the host's own proteins-pre­ treatment to be developed; as well as the possibility of testing sents problems in developing tests for the disease. Currently, breeding stock, or even, possibly, whole animal herds. the only solid test is a pQst-mortem study of stained slides of There is also work on developing a test under way at the the brain. USDA's National Animal Disease Center in Ames, Iowa, at It is also possible to biopsy the brain, take a tissue sample, the Respiratory and Neurologic Disease Research Unit. The and if that tissue, when injected into the brain of a mouse, work was begun by Dr. Mary Jo Schmerr, on sheep scrapie causes the mouse to develop spongiform encephalopathy in brain material. Since scrapie in sheep and goats is the proto­ 200-500 days, then it can be concluded that that brain was type of transmissible spongiform encephalopathies found in infected with the agents called prions. However, this test in other animals and humans, the test technique can have poten­ mice takes one to two years to get definitive results. In the tially wide applicability. medical realm, either waiting for the patient to die, or doing Dr. Schmerr and collaborators now have a means to iden­ a biopsy, and then waiting one to two years for a mouse to tify the presence-using micro-level amounts of brain mat­ develop spongiform encephalopathy, leaves a lot to be de­ ter-of the abnormal disease protein (the prion). The way sired. the test works is that some brain protein is denatured, and prepared into a monomer form (of prion protein) with a mo­ Surveillance and testing of cows, U.S.A. lecular mass of 27 kilodaltons. Then, peptides labeled with Since BSE was firstofficially designated in 1986, the U.S. fluorescein are added, along with a specific antibody that is Animal Plant Health Inspection Service and the Food Safety known to react with both prionand the peptide. At this point, Inspection Service have periodically monitored slaughter­ a technique called "free capillary electrophoresis" can be used houses, pulling out of the group of cows going to slaughter to evaluate the materials, which will differentiate themselves, any with clinical signs of rabies or any other central nervous based on "competitive" binding for the antibody. Depending system disorder. These cows are strictly examined, including on how much of the peptide is tied up, the scientists can tell extensive studies of stained slides of the brain. Roughly 250- whether there is any prion present or not. 300 cows a year looked clinically suspicious; but none turned The firstphase of the test-preparing the material-takes out to have BSE. Nonetheless, as BSE became a more height­ a day and a half. The capillary electrophoresis test is fast. ened concern, on March 20, 1996, the USDA expanded this This method involves running current across a very small surveillance operation. On June 10-11 in Ames, Iowa, the capillary, about 20 micrometers (or a nanoliter). Laser-in­ USDA Agricultural Research Service's annual conference, duced fluoresence detection is done using an argon laser. "USDA Scrapie/Bovine Spongiform Encephalopathy Con­ What you then "see," when the voltage is run across the mate­ sultant's Group Meeting," discussed research efforts to de­ rial, is the differentiated migration of proteins. From reading velop methods for testing. the pattern of "peaks," the presence of infective prion can There is need for increased, broad-based efforts to de­ be detected. velop tests for animals, humans, and for food and medical The test is still in what the developers call the validation products potentially involved in transmissibility of disease. stage, but technically, it does work well. A full report of the Progress in two testing approaches is being reported but seri­ test will be published this year in the Journalof Chromatogra­ ous questions remain about where, when, and how to draw phy ("Improvements in a Competition Assay to Detect substances from the person, or animal, to be tested. Scrapie Prion Protein by Capillary Electrophoresis," by Mary The most promising of these tests, so far, in the research Jo Schmerr, Kathryn R. Goodwin, Randall C. Cutlip, Allen phase, is being developed by Dr. Michael Harrington, at the L. Jenny). (See interview with Dr. Randall C. Cutlip, research California Institute of Technology in Pasadena, California, leader of the Ames USDA unit, in EIR, May 3, 1996.)

26 Feature EIR June 21, 1996 vately. Some examples: Southern Water is posting, for this fiscal year, a 15.5% jump in pre-tax profits(to £165.6 million) and a 22% jump in dividends. Among the new power compa­ nies, the average dividend per share jumped by 82% between How Thatcher ravaged April 1991 and April 1995. National Power shareholders' dividends are up by 45% since it began; directors are all get­ U.K. infrastructure ting share options, bonuses, and pay hikes. (National power accounts for 25% of all electric generation.) by Marcia MenyBaker and These privateering rates come from drastic cuts in work­ force and investment. In the electricity sector, the workforce Mary Burdman was cut from 144,000 down to 85,000. National Power cut its workforce from 16,000 to 4,700. In the north of England, the During the Thatcher governmentyears, 1979-90, the process new private water companies cut the workforce by half. of deregulation, privatization, and takedown of the infrastruc­ In 1995 alone, capital spending on infrastructure mainte­ ture of the United Kingdom-water, power, transport, medi­ nance and modernizationfell by nearly a fifth, in real terms, cal services, feed and food safeguards, resources develop­ in the gas, electricity, and water sectors-now mostly all pri­ ment-was either begun, or accomplished, so that today, the vatized. This follows declines in capital spending of 5% in lack of vital infrastructure constitutes a public health crisis. 1993, and 13% in 1994. Various state-run operations were selected by a group of Even the most vital public health measures are cut, such "experts" to be packaged for governmentsale to the "public." as rat control. One water company cut annual spending on The "experts" chose whether the sell-offs were fobbed off vermin control by 40%, compared to the pre-privatization onto the workforce through newly created public shares (giv­ level. Another no longer takes preventive measures, but only ing the governmenta one-time infusion of revenue); or, selec­ responds to individual complaints. Yorkshire Water cut its tively proffered to favored financialconnections, usually dirt rat-baiting budget every year, but increased its dividend to cheap, giving the privileged buyers rights to an "income shareholders. stream of profit." The sell-offlist included: Associated British Ports, Britoil (North Sea), British Aerospace (1983), Cable Public health breakdown and Wireless, National Bus Company, Rolls-Royce, Britain's The consequences are to be seen in the increased inci­ airports, British Leyland, British Steel, British Telecom dence of waterbornediseases and rising death rates; although, (1984), and many mOre. the low ratios of power, water, and similar supplies per house­ There was a revolving door between high Thatcher gov­ hold are masked by falling demand because of poverty, and ernment officials involved in shaping deals, and plum posi­ shutdown of industry and services. tions in the newly privatized industry. Peter Walker, Thatch­ • Rats in Britain now outnumber people. The June 1995 er's agriculture minister, who supervised the deregulation of Na tional Rodent Surveyestimates a 39% rise in rat infestation animal feed standards (1979-83), was energy secretary from in Britain between 1970 and 1993. 1983 to 1987, during which time British Gas was privatized. • By 1995, whole areas ofBritain, especially in the north, In 1990, Walker, within one month of resigning from the had water shortages, having nothing to do with weather. In cabinet, joined the board of the U.K.'s major livestock feed summer 1995, despite adequate rainfall, reservoirs were company, Dalgety PLC, and became a director of the privat­ empty; in some areas, water had to be trucked in to consumers, ized British Gas Corp. at exorbitant costs. The winter of 1995-96 saw pipes burst, The Conservative Party, under Thatcher, stated succes­ because of lack of replacement and upgrade, all over northern sive privatization goals in a series of manifestos for each England, parts of Scotland, and Wales. Thousands of house­ general election fromthe late 1970s to 1990. The 1979 mani­ holds had no water. festo pledged "to sell back to private ownership the recently • Thatcherite "reforms" have de facto ended the National nationalized aerospace and shipbuilding concerns, giving Health Care System, removed resources, and mandated 500 their employees the opportunity to purchase shares"; the 1983 separate Hospital Trusts to "compete for efficiency." Emer­ manifesto pledged "to increase competition in, and [attract] gency hospital admissions have risen by 13% over the last private capital into the gas and electricity industries." The four years. But, from 1991-95, some 9,000 acute-care beds 1987 manifesto pledged to privatize electricity and water. have been lost, 7% of the total. Patients are being turned away; emergency units are closing. In 1995, emergency admissions Privateers loot infrastructure rose by more than 6%, but fu nding for emergency work had As the physical economy is being looted out from under been cut by 1-2%. the 57.8 million population of the United Kingdom, record • Electricity is more expensive and unreliable. In real profits are being posted by "public" utilities now owned pri- terms, user prices rose each year until 1993.

EIR June 21, 1996 Feature 27 How Thatcherism led to BSE

The following is a timeline of events from the 1970s to the 1990s, recording the warningsthat were given by public health and political leaders, and the action-and inaction-of Margaret Thatcher and her circle. The four phases of the 25-year period are: 1) the 1970s, when Thatcherism ignored public health warnings, and intensified risks; 2) 1979-90, when the Thatcher government worsened the risks, stalled on BSE countermeasures when the disease broke out, and then spread it; 3) 1991-95, when Thatcherism continued after Margaret Thatcher leftthe government; and 4) 1996, when the scandal broke into the open. -Prepared by EIR staff in Leesburg, Wiesbaden, and Paris.

Disease outbreaks, warnings, and actions The policy record of Thatcherism

1970s: High-profile controversy rages in international scien­ 1970-74: Margaret Thatcher servesas secretary of state of ed­ tific circles about what the causative disease agent is for sheep ucation and science under Conservative Prime Minister Edward scrapie (known about for 250 years) and spongiform encepha­ Heath. lopathies in other species, and how infectious the agent is. Her degrees from Oxford (B.A., 1946; B.Sc., 1949), Somerville High incidence of scrapie in British flocks. There is a ratio of College, included chemistry and other sciences; she worked as a sheep numbers to cattle numbers, of over 2: 1. research chemist in the early 1950s, before taking a law degree U.K. rendering facilities startto drop use of organic solvent ex­ and entering politics in 1959. In college, "In my fourthand final traction of greaves (traditionally used in treatments of fats, such year (1946-47) I worked with a refugee German scientist, Ger­ as benzene, hexane, petroleum, perchloroethylene), and also be­ hard Schmidt, under [1 964 Nobel Prize crystallographer] Doro­ gin to use new continuous flow processing eqUipment, instead of thy Hodgkin's direction, on the simple protein Gramicidin Bas the traditional batch methods. Lower temperatures and pres­ the research project required to complete Part II of my chemistry sures are introduced, too low to deactivate certain bacteria and course." other contaminants. 1971 : Prosper de Mulder Ltd., private Anglo-Dutch company U.K. cartelfeed companies start promotional campaign for in the "approved" political circles of the neo-British Empire, im­ new "alternative" feeds, high in recycled animal proteins, to re­ portsthe first equipment for the new (U.S.) Carver-Greenfield place plain grain and grass-based feeds. process (lower temperatures and pressures) for rendering ani­ Researchers investigate spongiform encephalopathy that mal by-products. De Mulder is moving to dominate all rendering shows up in ranch minks in Wisconsin (U.S. ranch mink center; in Britain; over 1968 to 1975, de Mulder buys up 79 U.K. render­ and top dairy state), which is traced to eating contaminated ing facilities, either closing, or absorbing them; in the course of feeds from cow or sheep parts. this, de Mulder switches over to lower temperatures and pressure. March 11-Sept. 7, 1974: Mrs. Thatcher is environment secre­ tary in shadow cabinet of Edward Heath. Feb. 11, 1975: Mrs. Thatcher becomes leader of the Conserva­ tive Party. She says, "It was only in the mid-1 970s, when [Fried­ rich von] Hayek's works were right at the top of the reading list given me by Keith Joseph, that I really came to grips with the From the French newspaper ideas he put forward.... [In his book The Road to Serfdom] Nouvelle Solidarite. Hayek saw that Nazism-national socialism-had its roots in nineteenth-century German social planning. He showed that in­ tervention by the state on one area of the economy or society gave rise to almost irresistible pressures to extend planning fur­ ther into other sectors." She promotes dogma of government deregulation, free trade, privatization. Meanwhile, behind the screen of rhetoric of "individ­ ual and market competition," a select group of individuals and companies is moving to make huge gains off privatization and monopoly positions. In and out of the 1970s cabinets and shadow cabinets with Thatcher, is Thatcher's future agriculture minister, Peter Walker.

28 Feature EIR June 21, 1996 Disease outbreaks, warnings, and actions The policy record of Thatcherism

In 1970-72, Walker is Edward Heath's secretary of state for the environment; he is secretary of state for trade and industry, 1972-74. Thatcher says that Walker has a "thirst for the 'modern­ ization' of British industry." 1978: U.K. government-connected consultants draft proposals for tight licensing conditions for processing animal protein. D. Carleton Gajdusek, U.S. researcher of human central ner­ vous system disorders, receives Nobel Prize and delivers ora­ tion, "Transmissible Dementias of Man and Animals," promoting the "slow virus" view. March 1979: Nuffield Medical Center, Oxford, veterinary expert Thatcher's mentor on H.B. (James) Parry, stresses the genetic factor in sheep scrapie privatization, Keith Joseph, who agent, presenting the results of a study on this, warning, "In view served as her industry secretary of the wide interest aroused in the general subject, it is important and education secretary. to place on record facts regarding scrapie in sheep which are generally overlooked in the scramble to establish a primary infec­ tious aetiology for this group of disorders. The implications of these results are also important for the policies of Government Veterinary and Agricultural Departments around the world, who view scrapie, quite properly, as a potentially very serious matter." (From letter to British magazine Nature, which rejected Parry's work.) 1979: Prosper de Mulder Ltd. now dominates all processing of 1979: U.S. Departmentof Agriculture begins systematic exper­ animal slaughter waste products in Britain, and supplies growing iments in Ames, Iowa to see under what conditions cows might quantities of meat and bonemeal to cartel livestock feed compa­ be made to get transmissible spongiform encephalopathy (TSE) nies. The company's annual turnover doubles from £35 million in from infected sheep material. 1979, to £71 million in 1985.

The Thatcher governmentyears , 1979-90

May 3, 1979: Conservatives win general elections. May 4, 1979: Mrs. Thatcher becomes prime minister. Her agri­ culture secretary is Peter Walker; minister for environment is Michael Heseltine. September 1979: Release of the report of the Royal Commis­ September 1979: Thatcher government opposes conclusions sion on Environmental Pollution, which recommends that hy­ of the report fromthe Royal Commission on Environmental Pollu­ giene standards in British livestock feed be tightened. The com­ tion. Thatcher government decides to loosen regulations on mission wants tight license conditions for processing animal allowing animal wastes to be processed into animal feed, and proteins that are cycled back into the animal feed chain. The does not implement the 1978 draft proposals for tightening licens­ reportsta tes, "The major problem encountered in this recycling ing of processing animal wastes. process [involving animal waste] is the risk of transmitting dis­ ease-bearing pathogens to stock and thence to humans." A prominent member of the Royal Commission is Sir Richard Southwood, who continues to speak out against recycling im­ properly treated animal protein by-product, particularly scrapie sheep material, into the feed chain.

19805: The U.K. processing modes for rendering animal by­ 1980: Internal consultative papers of the Ministry of Agricul­ products are drastically changed to lower pressures and temper­ ture, Fisheries, and Food, show that cabinet members continue atures; continental rendering requirements remain far higher. In to favor ignoring the 1978 draft proposals for tight licensing re­ the U.K., animal product is rendered at temperatures as low as quirements for processing animal wastes. They favor dropping 80°C-low enough to kill salmonellae and some other microbes, the recommendations, and do not impose them. Instead, govern­ but not near to conditions necessary to deactivate sheep scrapie ment officials mandate a "self-regulatory regime" in the industry. scraps, and any similar infective wastes. At the same time, chem­ 19805: U.K. rendering of animal waste for livestock feed and ical solvents to clean the processing machines of the fat are other uses, is dominated by Prosper de Mulder Ltd., with its mo­ phased out of use. nopoly on processing abbatoir animal by-product. In Germany, the traditional batch mode of rendering is main­ 19805: The UK animal feed mix industry-which recycles the tained, treating animal by-products at a high pressure for a tem­ processed animal waste product-is dominated at this point by a perature minimum 13rC. cartelof companies, interconnected with old-line London and An­ In Denmark, farm veterinarians warn of biological holocaust glo-Dutch finance. The principal firm is BOCM Silcock, partof the from U.K. rendering and feed mix practices. Anglo-Dutch Unilever complex; other prominent firms are British Expertopinion recommends conditions for treating animal Petroleum Nutrition (whose Hendrix International division is the feed be cooking for more than four hours at a minimum of 120°C. biggest feed producer in Europe), Dalgety PLC, and Pauls PLC.

EIR June 21, 1996 Feature 29 Disease outbreaks, warnings, and actions The policy record of Thatcherism

Tainted animal feeds from UK are exported worldwide. U.K. feed cartel "experts" defend lowered temperatures and pressures in rendering animal wastes for livestock feed on grounds including: 1) saves fuel; 2) preserves nutrient-content Sheep fed with and appetizing character; 3) provides cheap protein substitute improperly treated for higher-cost corn, soybeans, and other livestock feed ingredi­ animal protein are at ents. Prominent cartel-backed centers for promoting "alternative" risk of infection with feeds and substances, include University of Nottingham scrapie. (Professor Cole); and University of Illinois (Champaign-Urbana; Prof. Dave Baker) .

1981 : Government promulgates the Diseases of Animals (Pro­ tein Processing) order of 1981 , which sets out minimal rules for allowing waste animal parts to be fed to cattle. Three cabinet min­ isters who sign this document are: Peter Walker, minister of agri­ culture, fisheries, and food; George Younger, the Scottish secre­ tary; and Nicholas Edwards, the Welsh secretary. This ratifies the continuation of infective animal by-product going into the feed chain.

1982: U.S. scientist S.B. Prusiner puts in use the term "prion," to refer to the pathogenic agent of spongiform encephalopathies, being "proteinacious, infectious (animal tissue) proteins," and not bacteria, nor viruses, nor such known microbes.

June 1983: Peter Walker leaves as agriculture minister; becomes energy minister (1983-87), where he continues deregu­ lation and privatization in gas and electricity.

1985: U.K. veterinarians and farmers observe many signs of 1985: The Monopolies and Mergers Commission (MMC) rules new cattle disease. that Prosper de Mulder Ltd., the monopoly rendering company, engages in "discriminatory" pricing. This is the second investiga­ tion of the company. (The MMC comes to make another ruling of "discriminatory pricing" in 1993.) At no time does the Thatcher government take action to curb Mulder in its pricing or process­ ing practices. Feed mix company Pauls PLC is taken over by Harrison & Crossfield PLC, the old tea conglomerate with longtime diverse agriculture commodities operations in former colonial territories, now leaving Asian palm oil and other plantations, and seeking retrenched positions in U.K. and related "mature" locations.

November 1986: First official diagnosis of BSE in Britain. 1986: Central Veterinary Office (CVO) identifies BSE as an epi­ demic disease among cows.

October 1987: Peter Walker leaves as energy minister; be­ comes minister for Wales.

1988: Britain's newly formed Working Party on Bovine Spongi­ 1988: Formation of Working Party on Bovine Spongiform En­ form Encephalopathy, constituted by the Department of Health cephalopathy by the Department of Health and Ministry of Agri­ and Ministry of Agriculture, Fisheries, and Food (MAFF), is culture, Fisheries, and Food, which works through 1989. called the Southwood Committee, because it includes as a mem­ June 1988: Government makes BSE a notifiable disease. ber, Prof. Sir (Thomas) Richard (Edmund) Southwood, professor Over 2,000 BSE cows are reportedfor 1988. of zoology, Oxford. He makes repeated warnings about the dan­ gers of recycling animal proteins back into the feed chain. July 1988: Australia bans importsof British cattle. July 1988: Government orders that all cows known to be in­ fected with BSE are to be destroyed; milk from infected cows is to be destroyed. Herds in which the infected cows are identified, are not required to be destroyed. Government does not enforce these rulings. July 1988: Government orders the ban of use of cows and sheep by-product to feed other cows and sheep. Government does not enforce this ban. Ministry of Agriculture, Fisheries, and Food overrules Depart­ ment of Health, over public health threat from extensive salmo-

30 Feature EIR June 21, 1996 Disease outbreaks, warnings, and actions The policy record of Thatcherism

nella in U.K. eggs supplies. After Health Minister Edwina Currie acknowledges scientists' claims "that most of the egg production in this country is now infected with salmonella," she then is forced to take a back seat to MAFF spokesmen, who say that no threat exists.

1989: Over 6,000 BSE cows are reported in U.K. this year. May 17, 1989: Memorandum to the British government from May 1989: Government rejects recommendations of memo­ then-Labour Party shadow Agriculture Minister Ron Davies, randum from Ron Davies, shadow agriculture minister for the states, "Infected meat is now being exported, in its raw state, to Labor Party.The government tells Davies that matters are "un­ other countries. The government's failure to take any action to der control," and that the dangers were being exaggerated. prevent the disease spreading, is so grossly irresponsible, as to June 1989: Government bans human consumption of certain be scarcely credible." He warns of an "enormous reservoir" of animal offal, including brain, spinal cord, thymus, spleen, and potential infection included in the annual export of 3,000 tons of tonsils. scrapie-infected sheep meal. Winter 1989: Release of results of study conducted by the Davies writes: "Such complacency ...is so blinkered and government's Working Party on BSE. It concludes that BSE selfish as to constitute a scandal-a scandal to which I hope our spread undetected in the early 1980s through feed supplements trading partners will wake up, before BSE hits them, to the extent containing rendered animal protein. The reportsug gests that that it has hit us. If they avoid that fate, it will not be due to any one likely cause for the emergence of BSE was increased use of consideration of their interests by the British government." sheep offal in animal feeds, including sheep infected with Recommendations by Davies include: testing of cattle at slaugh­ scrapie. Dr. Richard Southwood warns of the dangers of "unnatu­ terhouses, better enforcement oftougher abbatoir rules, the estab­ ral feeding practices." lishment of an independent Food Standards Agency, and assur­ ances that "consumers know where their beef is coming from." May 1989: New Zealand bans all imports of bovine genetic material from Britain. July 1989: European Community bans imports from U.K. of live cattle born before July 1988. Thatcher's U.S. Departmentof Agriculture (USDA) stops issuing permits Agriculture to importmea t scraps and bonemeal from the UK Importsof SecretaryPeter live animals are also banned. Walker. September 1989: USDA halts imports of bovine calf serum, which is used in medical products. Germany bans use of any animal remains in the feed of cattle. December 1989: The U.S. Animal Protein Producer Industry, an association of U.S. rendering industries, recommends that its members stop processing sheep for use in feed mixes for rumi­ nants. Dramatic increase is seen in United States (1985-90) in use of rendered cattle by-product protein back into animal rations.

January 1990: First case of BSE outside U.K., reported in the 1990: Over 13,000 BSE cows are reported in UK this year. Sultanate of Oman. Feb. 24, 1990: Saudi Arabia bans British cattle imports. March 1990: European Community bans importsto the conti­ nent from UK of live cattle over six months old (replaces July 1989 ban). EC makes BSE a notifiable disease throughout EC. April 1990: Russia bans British beef, milk, butter, cheese, and sheep and goat meat. May 1990: Call in the United States for setting up a BSE sur­ May 1990: Peter Walker leaves the cabinet. veillance program immediately, from Richard F. Marsh, veteri­ June 1990: Government demands that EC rescind bans on nary scientist at the University of Wisconsin, at Madison. ''The ex­ British beef, which are being imposed unilaterally by EC continen­ act same thing could happen over here as happened in Britain." tal member nations, along with dozens of other nations banning May 11, 1990: Feline equivalent of BSE identified in a cat in British beef, because they do not trust the Thatcher gover:n­ Bristol, England, the first time a domestic pet has been involved. ment's belated and inadequate 1988-89 anti-BSE actions. May 29, 1990: Austria bans importof British beef. June 26, 1990: More than 1 ,000 schools in U.K. drop home­ May 30, 1990: France bans importof British beef. grown meat from their menus. June 1, 1990: West Germany bans imports of British beef. July 1990: Walker joins the board of Dalgety Co., after four June 6, 1990: Italy bans importof British beef. years as agriculture secretary and four years as energy secre­ June 7, 1990: Qatar bans importof British beef. tary. Becomes non-executive director of British Gas PLC, and June 7, 1990: EC Commission vows to tighten measures to Tate & Lyle, cartel sweetener company; and on board of Cornhill curb BSE; France, West Germany, and Italy lift their bans Insurance, and others.

EIR June 21, 1996 Feature 31 Disease outbreaks, warnings, and actions The policy record of Thatcherism against British beef imports. Nov. 28, 1990: Thatcher resigns as prime minister. June 14, 1990: Switzerland bans import of British beef. Nov. 3, 1990: Switzerland reportsfi rst case of BSE.

Thatcherismcontinue s, post-Thatcher, 1991-96

Feb. 28, 1991 : France reports first case of BSE. 1991 : Twenty-five thousand BSE cows are reported in U.K. this year. 1991-92: Unilever, the Anglo-Dutch food/feed conglomerate, sells feed company BOCM Silcock (the 1980s name) to Pauls PLC, which since 1985 is owned by Harrison & Crossfield PLC. Other shifts take place: BP Nutrition is sold off in various ways; Dalgety PLC (with Thatcher's former agriculture secretary, Peter Walker, on the board) becomes the largest livestock feed mix company in the U.K., and a world food/feed colossus.

1992: 37,000 BSE cows are reported in U.K. this year. January 1992: Government threatens Russia for rejecting EU food aid offer of free U.K. beef-which rejection threatens the U.K. deal of getting paid by the EU for the giveaway beef. (Rus­ sian government decided in 1990 that British beef products may be BSE-contaminated.) British Minister of Overseas Develop­ ment Lynda Chalker says, "If they are going to react like this, we have lots of other things to do, not only with our beef, but with our time." One Foreign Office official hints that Russia's objections may "have been prompted by rival EU beef producers" seeking "future orders and EU money." USDA meat graderinspects beef carcasses. The British government muscles the EU Agriculture Commis­ sion, which issues ruling, "It goes without saying that there will be furtherco nsignments of British beef" for food aid to Russia. British Foreign Office hints that if Russia insists on saying no Aug. 11, 1992: Denmark's first case of BSE is confirmed. to food that it thinks is contaminated, then, the entire EU "food Release of book, Prion Diseases of Humans and Animals, aid policy to Russia might have to be reconsidered." summarizing what is known, and not known, about the agent and Peter Walker is made a life peer, as Walker of Worcester. He transmissibility of spongiform encephalopathy-type diseases, giv­ is former agriculture and energy minister under Thatcher, who de­ ing grounds for extra precaution to be taken on what goes into regulated British livestock feeds, and privatized British gas and the food and feed chains (New York: Ellis Horwood, 1992; edited electricity systems; he now serveson boards of largest compa­ by S.B. Prusiner, J. Collinge, J. Powell, B. Anderton). nies in same areas-Dalgety (largest UK feeds), British Gas PLC, etc.

1993: Thirty-four thousand BSE cow cases reported in U.K. this year. March 12, 1993: Medical journal The Lancet says that death from Creutzfeldt-Jakob disease (CJD) of a farmer whose herd had BSE, was the first fatality involving occupational contact with "Mad Cow" disease. Links are speculative. October-November 1993: European Union imposes policy of October 1993: British government opposes EU compensation "isolation and extermination" in dealing with swine fever outbreak to continental hog farmers in NorthEur ope hit by swine fever out­ in Northern Europe. Over two months, 520,000 pigs are killed in break. Germany's Lower Saxony alone; hog farmers are proscribed from resuming pig production for six months; farmers receive only the current meat price (DM 12.2 per kilogram) for their ani­ mals slaughtered; no EU compensation. Ireland and other countries where BSE shows up, practice ex­ terminating whole herds, not just single. stricken animals. 1994: Twenty-four thousand BSE cow cases reportedin U.K. this year. May 1994: Germany considers banning British beef and cat­ May 1994: Britain threatens to sue Germany in the European tle. Three cows in Schleswig-Holstein appear to have BSE; all court at The Hague, if Germany goes ahead with the import bans three were imports from Britain, coming through the same Ger­ that Bonn is now conSidering on British beef and cattle. man breeder, who now comes under investigation for whether The European Commission, under heavy pressure from Lon­ he used feed mixed with animal remains, outlawed in Germany don, warns Bonn that it will face legal proceedings for restraint of

32 Feature EIR June 21, 1996 Disease outbreaks, warnings, and actions The policy record of Thatcherism since 1989, but marketed by Britain. trade if Germany bans British beef. May 11, 1994: Bonn backs down, under pressure from Lon­ don, on Germany's threat to ban imports of British beef immedi­ ately. The German cabinet agrees to impose a ban if the EU fails to reach agreement on tougher measures to fight British BSE. May 26, 1994: All three German "Mad Cow" cases are con­ firmed to have BSE; they came from the UK The Helmut Kohl government wants an EU ban on British meat exportsof cows over three years old and from U.K. farms Thatcher's which have not been BSE-free for the past four years. German ideological Agriculture Minister Jochen Borchert says he will insist, at the guru, Friedrich May 30 EU agriculture ministers meeting, on a Europe-wide ban von Hayek. on British beef and cattle exports, to stop the spread of the dis­ ease. He says that he is checking whether a ban could be im­ posed on slaughtering British cattle imported into Germany be­ fore July 1990. "The aim of all measures must be to ensure consumers can continue eating beef without facing health risks." German Health Minister Horst Seehofer rejects the suggestion of a restricted slaughter ban: "Isolated measures won't work. We need a common EU ruling." Bonn officials say that scientists have been unable to prove the BSE disorder cannot be transmit­ ted to humans. July 18, 1994: EU bans exportsof meats containing bones, from cattle herds which had not been free of BSE for six years (in­ stead of two years, a previous precaution). Dec. 7, 1994: EU agrees to ease exportcu rbs on beef from British cattle born since Jan. 1, 1992.

1995: Fourteen thousand BSE cow cases reported in U.K. this year. February 1995: World Trade Organization (WTO), based in Geneva, and functioning as an arm of the private finance commodities cartel interests interconnected with Thatcher circles, issues annual report (for 1994-95) featuring progress on the new International Bovine Meat Agreement (in effect as of Jan. I, 1995), which, as of Jan. 31, is signed by all 15 EC member nations, by the United States, Canada, Japan, Brazil, Switzerland, and others, and makes no mention of BSE. WTO stresses the Thatcherite line that the agreement "aims at promoting the expansion, ever greater liberalization and stability of the • international meat and livestock market by facilitating the • J progressi ve dismantling of obstacles and restructions to world trade in bovine meat and live animals, and by improving the international framework of world trade to the benefit of "Degulation is driving me crazy"- from the German weekly Neue consumers, producers, importers and exporters." Solidaritiit. Dec. 7, 1995: Prime Minister John Major tells Parliament that media are exaggerating threats to humans from tainted meat, saying, "There is no scientific evidence that SSE can be transmitted to humans." Dec. 14, 1995: Governmentimposes new controls forbidding any use of the animal 's spinal column in "mechanically recovered" meat for meat products for human consumption-sausages, ground meat for meat loaves, pies, casseroles, pastries.

Scandal breaks of Thatcherism-BSE links, March 1996

Reportedcases of BSE outside of U.K., to date: 1996: Officially, 161 ,663 cases of BSE are reported in the U.K. Switzerland 206 Italy 2 since 1986. BSE cases continue to be reported in the U. K. at the Ireland 123 Oman 2 rate of over 70 per week. Portugal 31 Canada France 13 Denmark Germany 4 Falklands

EIR June 21, 1996 Feature 33 Disease outbreaks, warnings, and actions The policy record of Thatcherism

Feb. 6, 1996: Five German regional states ban importsof British beef. March 18-20: Paris international conference on spongiform en­ March 18, 1996: Government recalls British scientist group cephalopathies sees abrupt departure of U.K. delegation-re­ from Paris conference on spongiform encephalopathies, before called to Britain. They were scheduled to reporton 10 anomo­ they could speak there. The British group represents the 13- lous cases of CJD, being investigated for links to BSE. Olivier member U.K. Spongiform Encephalopathy Advisory Committee Robain, experton human and animal prion diseases at the Salpe­ (SEAK), originally scheduled to reportto international scientists triere Hospital in Paris, comments, "We are asking ourselves if on details of studies of 10 non-conventional cases of CJD in this was censorship." He notes that the U.K. delegation could U.K., under study for possible BSE links. have spoken before they left. March 19: UK Departmentof Health calls in Ogilvy and March 21 : Bans on imports of British beef announced by Mather advertisingagency, to put together an ad campaign, in­ France, Belgium, the Netherlands (until March 25), Sweden, Por­ tended to be run March 22 and 23, to damp the flak over unsafe tugal, and other nations; Germany calls for a Europe-wide ban. meat. EU Commission in Brussels denounces France's unilateral ac­ March 20: British government spokesman states that BSE tion as illegal under EU codes. could be transmitted to humans, in the form of a variant of CJD. March 22: Germany, Finland, Greece, Austria, Italy, Cyprus, Health Minister Stephen Dorrell announces to Parliament that Finland, Singapore, New Zealand, South Africa, South Korea, the BSE link to humans is being investigated. Media reportsthis and others, suspend importsof British beef. as a bombshell. EU Commission backs down from March 21 position that na­ March 22: Dr. RobertWill, U.K. representative to the EU veteri­ tional bans are illegal under EU codes, and instead, decides that nary meeting on BSE on this date, provides no written material of where food supplies may be perceived to be threatened, the na­ any kind to his counterparts. Will was author of March 20 report tional governments may institute such bans as "precautionary to Parliament on the subject of the potential transmissibilityof en­ measures" to protect the public interest, under EU codes. cephalopathy between cows and humans. March 25: EU veterinarians meet, concur with continuing ban March 25: U.K. Agriculture Ministry announces new restric­ on importing British beef. Marc Savey, French representative to tions on selling rendered animal proteins and bonemeal to farm­ the EU veterinary group and chief of the Health Department at ers as animal feed. France's National Center of Veterinary Studies, says, "We are in Dr. Will, assigned to the EU veterinary group, again gives only a situation which can properly be characterized as horrific, on an oral reporton BSE situation in UK He opposes the otherwise the verge of scandal. It is intolerable that five days after the an­ unanimous decision of EU veterinary representatives to call for nouncement of the British government, the scientific community EU ban on exports of beef and cattle products from the UK still does not have access to all the medical information on this Prime Minister John Major calls Jacques Santer, president of dossier" of 10 non-typical CJD cases under study (Le Monde, EU Commission, and orders him to call another meetingof the March 26). Savey says, "It is scandalous that [U.K. veterinarian veterinary council for March 26 to "double check" the March 25 Dr. Robert) Will gave only an oral report.... Today we still have decision. Major sends another delegation of "experts"to "con­ no objective information. I had come [to Brussels) to discuss writ­ vince" the veterinarians. ten documents. This is a total break with the scientific commmun­ ication practices on such a very grave problem." EU Commission has emergency meeting, imposes ban on all British exports of beef and cattle products to EU and non-EU countries, to be effective March 27; hours later, EU Commission suspends its decision, pending convoking of another EU veteri­ nary meeting, March 26, demanded by UK March 26: EU second veterinary meeting takes place, at de­ mand of U.K. EU bans continue. March 27: Lord William Rees-Mogg, in the London Times, National Farmers Union of U.K. calls for selective culling of plays down the U.K. government role in BSE, with an essay, beef herds, targetting millions of older cattle born before 1992; "Mad about BSE," saying that "diseases come and go, and their calls for UK government compensation; expects 2-4 million ani­ history is obscure." mals to be killed. April 1-3: EU agriculture ministers in marathon meetings in April 1 : UK Treasury sets up fund of £1 18 million to aid "ren­ Luxembourg; concur on continuing EU ban on exportsof British dering industry"-a euphemism for Prosper de Mulder Ltd., beef and cattle products; reject UK Agriculture Minister Douglas which constitutes over 70% of industry-because animal by­ Hogg's demand to lift ban. EU offers to compensate British farm­ product for animal feed is now prohibited. ers at level of 70% for costs of culling herds in which BSE cows Prosper de Mulder Ltd. and Agriculture Ministry are collaborat­ are found, although EU codes call for only 50% compensation. ing on using rendered cattle carcasses as fuel for power sta­ The conditions of the offer are that U.K. government is to submit tions. De Mulder spokesman says, we want ''to recover some an acceptable anti-BSE culling program. value from it." Mrs. Angela Browning, junior agriculture minister, April: EU sets up high-level commission to recommend re­ says, "Rendered material for fuel has potential." Charles search projects on possible links between BSE and CJD, to be Reynolds, for Prosper de Mulder, says that home-fuel use is pos­ headed by Charles Weissman, director of the Institute of Molecu­ sible, because the sand-like rendered product "will produce more lar Biology in Zurich, Switzerland. energy per ton than chicken litter, which is used in power sta­ French government commissions medics to provide an expert tions, and it has two-thirds the calorific value of coal." The prob­ opinion on potential risk to humans of BSE. lem is, that burning meat and bonemeal leaves 25% of its input weight, whereas coal leaves only 8%-i.e., you have higher

34 Feature EIR June 21, 1996 Disease outbreaks, warnings, and actions The policy record of Thatcherism

waste with the animal products. April 1 : Agriculture Minister Douglas Hogg goes to EU agricul­ ture ministers' meeting in Luxembourg; demands EU lifting of bans against British beef and beef-products exports. April 3: Agriculture Minister Hogg gives press conference in Lux­ embourg, lasting only22 seconds, stating his displeasure atthe EU decision to continue ban on British beef, and displeasure at EU offer to compensate the U.K., at rate of 70% for costs incurred. April 4: Agriculture Minister Hogg reports back to Parliament on EU decisions on U.K., beef, and BSE; he says, "The ban is not justified. It is inappropriate and should be removed." May 9: In France, Dr. Dominique Dormont, a brain specialist, Early May: Government begins program of slaughtering older gives preliminary opinion to the govemment that there is possi­ cows, starting with about 10,000 cows a week; expects to rise to ble risk of human disease from cows with BSE. 15,000 animals per week. Government takes no other decisive May 20: EU veterinary council rules that Britain's efforts to anti-BSE actions. battle BSE are not convincing. May 21 : British government demands that the EU Commis­ May 21 : EU agriculture ministers decide not to lift the ban on sion lift the ban on exportsof secondary beef products from Brit­ secondary beef products from Britain, based on the previous ain-tallow, semen, and gelatin-now that cow-culling has day's EU veterinary group's decision that Britain's effortsto started. Britain demands this as a first step to the EU throwing battle BSE are not convincing. out the embargo on British meat and cattle products altogether. The EU refuses. Prime Minister Major addresses Parliament on the EU refusal to acquiesce, accusing "unnamed partners,known to include the German chancellor, Helmut Kohl, of breach of faith and a willful disregard of Britain's interests." Major announces thal Britain will Prime Minister veto all decisions coming up in the European Union; it will adopt John Major: a policy of non-cooperation in the Inter-Governmental Confer­ "There is no ence, and "disrupt" the next EU heads of government summit in scientificevidence Florence, Italy, on June 21-22. Major threatens that Britain will re­ that BSE can be fuse to sign any communique at Florence, and by that;turn the transmitted to whole meeting into an absurdity. Major says that the cabinet is . humans. " working on a package of "retaliatory options" to "punish" the Euro­ pean partners. June 5: Foreign Secretary Malcolm Rifkind and Agriculture Sec­ retary Hogg meet in Rome with Italian Foreign Minister Lamberto Dini, host to upcoming June 20 Florence EU summit, to try to get a deal on EU backing down from bans on British beef and cattle, in ex­ change for U.K. giving up non-cooperation stance in EU. June 5-7: Foreign Secretary Rifkind proceeds tofive more Euro­ pean capitals to lobby for EU deal on phasing out bans against Brit­ June 4: French govemment receives official medical report ain. He presents EU leaders with four-page document listing ten ar­ from French experts, on the potential risks of BSE to infect hu­ eas for phase-out, including the right to export embryos, very mans-which danger, say French experts, needs two years fur­ young calves, beeffrom specialist herds reared on grass, and beef ther study, but meantime, precautions are required. from cattle under 30 months of age. Government also wants right June 5: EU Commission decides to lift ban on certainof Brit­ to exportto third countries, "under special conditions." ish cattle-derived products, including gelatin and bull semen. Ger­ June 7: Passports for U.K. cows are offered as anti-BSE many says it will not comply with the EU Commission, and will action by Agriculture Ministry, for "public comment." The "cow pa­ continue ban on all British beef-related products. Germany, pers" are intended to record all the animals' movements from France, and other EU members continue to demand that the their original herds, in case the animals later come down with U.K. do more against BSE before ban on British beef exports will BSE, and to provide traceability and identification if necessary. be lifted. "It will be illegal to move cattle born after the new legislation June 6: French Prime Minister Alain Juppe assembles his min­ comes into force without a cattle passport. Central records will isters for food, health, and research, and validates medical be kept linking ear tag numbers with the animal's date of birth, reportson BSE threat to humans. breed, sex, and identification of dam." June 7: Jean-Franc;oisGir ard, director-general of the French June 10: Agriculture Secretary Hogg goes before Parliament Health Ministry, holds a news conference to say that a new medi­ to answer questions on how waste from rendering plants is being cal reportby French experts concludes BSE should be assumed disposed of. to carry a potential infection risk, pending further research, which Dr. Alan Colchester, neurologist at Guy's Hospital, London, could take two years. Government official in charge of research, points to possibility of infective agents in effluent discharges from Bernard Bigot, says France will provide an extra 3 million francs rendering plants, reaching humans through water supplies or (nearly $600,000) to a panel set up to study the disease. The direct contact. He calls for tightening regulations on rendering, number of researchers involved across France will be upped stricter policing of rendering practices, and for the inspection from 40, at present, to 100. process itself to be subject to audit.

EIR June 21, 1996 Feature 35 EU decisions, until and unless the EU Commission back down and remove bans on Briti sh beef. Major pledged to "disrupt" the next EU heads of state summit, set for Florence, June 20, and tum it into "an absurdity."

European backlash Santer: London's behavior 'absurd' A good yardstick for how much opinion in Europe has grows against London turned against the British, is the interview which the chair­ man of the EU Commission, Jacques Santer, gave to the by Rosa Tennenbaum London Observer on June 9. Santer, an outspoken ally of the British Conservatives, warned London not to further try the Europeans' patience. He called British behavior "absurd" "The transmission of BSE to human beings can no longer and "irresponsible," and reminded them that "it is the British be ruled out." With this statement from British Minister of government that has triggered the crisis." Health Stephen Dorrell on March 20 to the Parliament, the "I have to say that the British government has been John Major government kicked off an avalanche, whose responsible for mismanagement of the whole crisis," he said. effects they obviously underestimated. A healthy national­ "Let us say this in a very friendly way, the crisis was trig­ ism has been provoked on the continent, by the specter of gered by statements on March 20 in the British Parliament BSE affecting humans, and by the years of inaction, coverup, that there could be a new virus." Santer stressed, "The prob­ and belligerence from London. lem can only be solved by measures taken in the U.K." The media immediately seized on Dorrell's announce­ Santer' s tone is not merely unusual because it goes ment, and twisted the possibility of transmission into a cer­ tainty. Headlines such as, "Mad Cow Disease Can Be Trans­ mitted to Humans," and pictures of cows with skull and crossbones symbols, as on poison bottle labels, had their impact on the consumer, who quickly decided to do without the enjoyment of steaks and roast beef. This in tum triggered a collapse of the meat markets, creating a crisis throughout the entire European meat sector, already in deep trouble. The sudden collapse in meat consumption forced govern­ ments into action. On March 21 and 22, France, and then other European Union member nations, decreed a unilateral ban on British beef imports-a heavy-handed rejection of EU rules. The EU Commission in Brussels reacted sharply; on March 21, it sent ultimata to member countries to stick to the rules, and remove import bans. Late on March 22, the EU Commission lost the showdown; for the first time, they bent to the will of the member nations. Brussels declared a worldwide, total export ban for British beef and all beef products. The British went berserk. In ever more imperious tones, British Agriculture Minister Douglas H�gg, Foreign Minis­ ter Malcolm Rifkind, and Prime Minister John Major all demanded that the EU prohibition on British beef be lifted. In their arrogance, the lords of London forgot that no one can order consumers in Italy, Germany, or anywhere else to buy British beef. Yet that is just what the Major government wants to do. For London, it is the export ban which is grounds for complaint, not the cattle disease BSE. They increased their pressure on the EU, attempting to force member countries to capitulate.

On May 21, Major decreed a policy of "non-cooperation" A German grocerystore, March 1996: "We guarantee that our with the EU Intergovernmental Conference, vowing to block beef does not come from England. "

36 Feature EIR June 21, 1996 against the enormous influence which Britain has had on the EU Commission. Santer said further, "Europeans are beginning to question Britain's membership of the European Union." The "war atmosphere" which the British have con­ The leading finns jured up inside the EU will, of course, provoke counterreac­ tions from other countries, and "that would create an atmo­ during BSE's spread sphere of anti-Britishness in Europe." He warned London, "The 'hour of truth' is approaching." by Anthony K. Wikrent Several of the 14 other EU members are obviously no longer ready to tolerate the attitude of the English. The view that the EU would function better without the British, is During the 1970s- 1990s, when sheep scrapie and infected being expressed more and more in public. cattle remains were cycled through the British livestock feed Left to its own, theEU Commission would gladly comply chain and exports, one company came to dominate all render­ with the British demands, but it cannot, because there is ing in the U.K.-Prosper de Mulder Ltd., a private, secretive too much counterpressure. The pro-British Santer excused Dutch-Anglo family firm; and the use of rendered animal himself in the Observer: "It is not just governments, it is protein wastes as supplements to livestock feeds was, in turn, public opinion, consumer organizations, pressure groups and channeled through a small number of pre-mix commercial lobbyists," which are forcing governments, as well as the feed companies-all interconnected with the famous-name EU Commission, not to buckle under to the British. British business elite among the Thatcher political circles, In early June, the EU Commission loosened the export such as British Petroleum and Unilever. ban on a few British cattle products, such as gelatin, but Below, we provide corporate profiles of the companies Brussels can't implement this policy. For example, the Ger­ involved, and background on leading board members. These man federal states demanded that Bonn unilaterally uphold short profiles show that, far from an "accidental" occurrence the import ban. The government of Chancellor Helmut Kohl of contaminated substances entering the feed/food chain at cannot backtrack on this decision. Portugal, France, and the some isolated point of weakness, the years of recycling large Scandinavian countries are under similar pressure. amounts of improperly rendered animal proteins into the fe�d chain was top-level, board policy. Conflict of 'fundamental economic policy' Behind the theater of the absurd which the Tories have staged over recent weeks, lurks a battle over fundamental BOCM Pauls Ltd. principles in economic policy. "There is a gigantic cleft 47 Key Street, Ipswich IP4 1 ex, Suffolk, United Kingdom between the economic theories of the British and those of 1991 revenues=£338.405 million the continental Europeans," said the German chairman of 1991 profit=£3.725 million the European Parliament, Elmar Bruck, in a May 9 radio broadcast. "The Europeans want to maintain their socially Key personnel: oriented economy; the British want abolish it, indeed they Jonathan Martin Paul, chairman (Pauls PLC, director). have piJloried it. They want to tighten investments as a way Peter Graham William Simmonds, director (Associated of reducing social costs. For us that is the wrong way." British Maltsters Ltd., chairman; Harrisons & Crossfield His British counterpart John Stephens corroborated this: PLC, director). "The crisis is not over BSE, but over which future policy is correct for the Union. We have to drastically reduce the In the 1980s, this firm was BOCM SiJcock, a manufacturer role of the state in the economy. That is the conflict." and distributor of pre-mix livestock feed, part of the Unilever That is indeed the conflict. TheEuropean public, already complex of companies. Unilever is the world's largest pro­ suspicious of anti-nation pacts like the Maastricht Treaty, ducer of ice cream and margarine, one of the top fiveworld now see their worst fears confirmed. Supranational institu­ exporters of milk powder, second largest producer of soaps tions are obviously not able, or not willing, to guarantee the and detergents, and one of the top five world processors of basic interests of citizens, such as safe food, and protecting edible fats and oils. Unilever owns vast plantations in Africa health. Everywhere, you hear people say, "Only national and is also Africa's largest trading company, through subsid­ governments have finally taken action and made the bor­ iary United Africa Co., which is comprised of the old British ders secure." Empire trading firms, Niger Co., and the African and Eastern Europe is experiencing a true renaissance of national Trading Co. Unilever is among one of the most important sovereignty. And thus, the tragic story of the BSE cattle companies in the Anglo-Dutch oligarchy; some of the direc­ disease, will perhaps turn out to be a turning point in Euro­ tors are : Lord Wright of Richmond, former head of Her Maj­ pean history. esty's Diplomatic Service, and chairman of the Royal Institute

EIR June 21, 1996 Feature 37 of lnternational Affairs (see profilebelow, under British Pe­ troleum); Sir Derek Birkin, chairman of RTZ Corp. PLC, the world's largest mining company; Karl Otto Pohl, former president of the German Bundesbank, and a member of the BP Nutrition International Council of J.P. Morgan & Co. Inc. Wincham, Northwich,Chesh ire CW9 60F, United Around 199 1 or 1992, Unilever sold BOCM Silcock to Kingdom Pauls PLC, which itself had been bought by Harrisons & 1992 revenues=£142.255 million 1992 10sses=£2.242 million CrossfieldPLC in 1985.

BP Nutrition, which included Purina Mills Inc. in the United States, was a wholly owned operation of British Petroleum. Harrisons & Crossfield BP Nutrition was broken up and sold by British Petroleum in PLC a series of transactions in 1992 through 1993. 1 Great Tower Street, London, EC3R 5AH, United Kingdom 1993 revenues=£2.21 0 billion 1993 profit=£98.0 million The British Petroleum 30,975 employees Co. PLC Britannic House, One Finsbury Circus, Key personnel: London EC2M 7BA, United Kingdom George Paul, chief executive officer (Pauls PLC, chair­ 1995 revenues=£36.1 06 billion man; Norwich Union Holdings PLC, director; Norwich 58,150 employees Union Life Insurance Society, director; Scottish Union & Na­ tional Insurance Co., director; Maritime Insurance Co. Ltd., Key personnel: director; London Export Corp. Ltd., director). Sir David Simon, CBE: chairman 1995- (Bank of En­ Sir Richard Ernest Butler Lloyd, director (Vickers PLC, gland, director; Deutsche Bank, International Atlvisory former chairman; Hill Samuel Bank Ltd., deputy chairman; Council; Allianz AG, director; Grand Metropolitan PLC, di­ Hill Samuel Securities Ltd., chairman). rector 1989- ; RTZ Corp. PLC, director 1995- ). Frances Anne Heaton, director (Bank of England, direc­ Lord Wright of Richmond, KCMG, CMG: director 199 1- tor; Panel on Takeovers and Mergers, director general; Lazard (entered Diplomatic Service 1955, first secretary of Embassy Brothers & Co., director). to United States 1960-65; Head of Middle East Department Hugh Salusbury Mellor, director (Australian Mutual Foreign and Commonwealth Office 1972-74; private secre­ Provident Society, London Board; Burmah Castro I PLC, di­ tary fOr overseas affairs to prime minister 1974-77; ambassa­ rector; Dalgety Australia Ltd., director; Dalgety Zimbabwe dor to: Luxembourg 1977-79, Syria 1979-8 1, Saudi Arabia Ltd., director). 1984-86; permanent undersecretary of state and head of diplo­ matic service 1986-9 1; Barclays Bank, director 199 1- ; De Harrisons & Crossfieldwas begun as a tea trading venture La Rue, director 199 1- ; Unilever, director 199 1- ; Royal In­ in 1844. In 1895, the chairman, Arthur Lampard, visited Rus­ stitute of International Affairs, Council 1992-95, chairman sia and established a trade route from Ceylon to Moscow, 1995- ; Ditchley Foundation, governor 1986- ; Royal College passing through the Black Sea port of Odessa, historically of Music, Fellow 1994). a crossroads of international oligarchical intrigue. In 1903, Peter Sutherland: director (former director general of the Lampard began to steer Harrisons & Crossfield into rubber, General Agreement on Tariffs and Trade). establishing plantations in Malaysia and Sumatra. In 1920, H. Michael Miles, OBE: director (Johnson Matthey PLC, the firm branched into timber production and trading, with director; John Swire PLC, director; ING Barings Holdings operations based in Borneo. A few years later, the firm also Ltd., director). began growing coconut palms and extracting coconut oil on Sir Patrick Sheehy: director (BAT Industries PLC, chair­ plantations in the Philippines, Ceylon, and the Malabar Coast. man; Swiss Bank, director). In the 1950s and 1960s, the firm began to diversify, mov­ ing into chemicals and chromium. By the mid- 1980s, the out­ The largest non-financial company in Britain, and the put of the firm's tea, rubber, and coconut plantations ac­ fourth largest of the world's oil multinationals, more than half counted for only a quarter of Harrisons & Crossfield's of BP' s world output comes from the North Slope of Alaska; revenues. The firm bought Pauls PLC in 1985. Pauls, which another third comes from the North Sea. manufactures malt and animal feeds, in turn acquired BOCM BP began with the joint project of William Knox D' Arcy Silcock around 199 1-92, from the Unilever complex. Note and Burn1ah Oil, which struck the first oil in the Middle East the link with Dalgety through Hugh Salusbury Mellor. in 1908. D' Arcy was then duped by British intelligence opera-

38 Feature EIR June 21, 1996 tive Sidney Reilly, known as the "ace of spies," into turning in western Canadian lumber, and in U.S. poultry. In 1969, over the findto the Anglo-Persian Oil Co., run by Lord Strath­ Grossmith Agricultural Industries, the largest British animal cona. Winston Churchill convinced Hi s Majesty's govern­ feed company, was acquired, followed a year later by the ment in 1914 to buy 51 % of Anglo-Persian. The firm was in Pig Improvement Co., which has become the world's largest on the first oil strikes in Iraq (1927) and Kuwait (1938). In supplier of pig breeding stock. In 1972, Dalgety acquired 1928, Anglo-Persian and its major competitors made a secret Associated British Maltsters, but sold it in 1987, along with "as is" agreement, which fixed world production and prices Balfour Guthrie. for the next 20 years. Anglo-Persian changed its name to In the late 1970s, Dalgety began a major shift into food British Petroleum in 1954. processing and distribution. In 1977, the British flour-milling Morgan Guaranty Trust Co., of J.P. Morgan, holds 1 6.67% firm Spillers was acquired in a hostile takeover, and trans­ of BP. FMR Corp., parent of the Fidelity mutual fu nds, owns formed into the largest pet food producer in Europe. Martin­ 5.54%. The Kuwaiti Investment Officeholds 9.42%. Brower, the largest supplier to U.S. McDonald's fast-food restaurants, was acquired the same year. In 1985, Dalgety purchased Gill & Duffus,the world's largest trader of cocoa. Harrisons & Crossfielddirector Mellor is also a director DALGETY_1 of Dalgety subsidiaries in Australia and Zimbabwe. Dalgety PLC 19 Hanover Square, London W1 R 9DA, United Kingdom 1995 revenues=£4.907 billion Prosperde MulderLtd. 1995 profit=£ 127.1 million Ings Road, Doncaster DN5 9SW, United Kingdom 17,877 employees 1995 revenues (est.)=£135 million 1 ,100 employeel> Key personnel: Maurice Warren, chairman (South Western Electricity Key personnel: PLC, chairman). Prosper de Mulder, chairman Brian Baldock, director (Guinness PLC, deputy Anthony de Mulder, director chairman). Peter Birch, CBE, director (Abbey National PLC, chief Prosper de Mulder Ltd. controls 70% of Britain's meat­ executive officer). rendering industry, in which the offal and other \.lnused rem­ The Rt. Hon. The Lord Walker of Worcester, MBE, PC, nants of dead animals are processed and recycled into animal director (Privy Council; Minister of Agriculture 1979-83; feed. It was de Mulder, which, in the 1970s, introduced con­ Minister of Energy 1983-87; Secretary for Wales 1987-90; tinu�us processing into Britain from the United States, replac­ Cornhill Insurance PLC, chairman; British Gas PLC, director; ing the pressurized batch system under which offal and other Smith New Court PLC, director; Tate & Lyle PLC, director). waste was cooked at high temperature under high pressure and treated with very strong solvents, such as benzene. In In 1995, Dalgety placed 18th in the world ranking of food 1990, the firm admitted that at least one of its five factories and beverage companies, by dollar volume of sales. was processing offal at 115-120°C, at least lOoC below the Dalgety began in 1846 as an Australian trading operation, safety threshold recommended by the European Community. dealing in wool. It survived the collapse of the wool market Thanks to Thatcher's orgy of deregulation, processing at these in the late 1840s because of the 1851 gold rush in Australia, lower temperatures, at which, British government reports in which Dalgety & Co. made a fortune supplying gold min­ warned, bacteriological contaminants would not be elimi­ ers. In 1854, a London officewas established, and soon after, nated, was entirely legal. These governmentreports were kept founder Frederick Dalgety also moved to London. The firm secret until the BSE scandal broke in May 1996. became a public company in 1884. In the early 1900s, the The cheaper continuous processing allowed de Mulder to firmmoved to exploit the new technology of refrigeration, by undercut its competitors. Between 1968 and 1975, de Mulder transporting lamb, butter, and cheese from New Zealand to bought up 79 smaller businesses involved in the meat trade, Europe. Dalgety & Co. enjoyed a sharp increase in demand establishing a "monopoly of the cattle feed trade" in Britain. for wool for military uniforms during World War I, but World The firm hasbeen investigated three times by the Monopolies War II saw the widespread introduction of synthetic fibers, and Mergers Commission (MMC). In 1985, and again in which rapidly cut into the wool market. 1993, the MMC ruled that Prosper de Mulder Ltd.'s pricing In 1962, Dalgety merged with the New Zealand Loan and policy is "discriminatory." Slaughterhouses, which are le­ Mercantile Agency, to become the world's largest broker of gally bound to have offal removedwithin 48 hours of di ssec­ wool. Its first major expansion into other industries came in tion, have complained that they have no choice but to use de 1966, with the acquisition of Balfour Guthrie, with interests Mulder' s services, and describe the firm as "ruthless."

EIR June 21, 1996 Feature 39 �TIillIntemational

British Crown lashes out at LaRouche inAu stralia

by Allen Douglas

During early June, the name "Lyndon LaRouche" dominated Australia, Fischer emerged from his talks with Brittan to at­ political discussion in Australia, a phenomenon provoked not tack the "extremist" LaRouche, as the author of the mass by domestic events, but as the reaction of a terrified British demonstrations. He repeated the utterly baseless charges the Crown-centered international oligarchy, to LaRouche's next day. growing policy influenceworldwide-particularly in Russia, On June 5, Fischer hopped on a plane to the United States China, and the United States, as chronicled in recent issues of to meet with top officialsof the Clinton administration, osten­ this magazine. Australia, being a key Commonwealth country sibly about "farm and trade" matters. That same day, the Hol­ and home to a very active, LaRouche-associated organiza­ linger Corp.-owned Sydney MorningHerald ran a front-page tion, the Crown launched what LaRouche, in a radio interview article attacking LaRouche. It displayed the logo of with "EIR Talks" on June 6 (see Documentation), called "a LaRouche's Australian co-thinkers, the Citizens Electoral very savage attack against me . . . figuring that perhaps we Council (CEC), on the front page, and LaRouche's picture were vulnerable there ... to rid Australia of my influence, and two additional major articles devoted to LaRouche, on and, also, to use that as a springboard for attacks on me, the inside pages. Similar attacks appeared all over the country, again, here." most prominently in Hollinger's The Age in Melbourne, the There was a several-day buildup to the explosion of pub­ country's largest daily, and Rupert Murdoch's the Australian. licity about LaRouche. On the following morning, Australians across the conti­ On June 1, more than 150,000 people demonstrated in nent heard Lyndon LaRouche on the ABC's Radio National Melbourne,against radical new gun control laws proposed by program, an interview played throughout the day. On June 7, the Liberal-National coalition federal government; the bills Fischer's 6:30 p.m. press conference at the Australian Em­ were introduced, following an April 28 massacre of 35 people bassy in Washington, D.C. was devoted largely to LaRouche by a gunman in Tasmania. Counting demonstrations in other (see Documentation). And on the morning of June 8, cities, over 1% of the entire Australian population hit the LaRouche appeared live (by satellite), for the firsttime ever, streets-the largest mass actions since the anti-Vietnam War on Australian TV, on the "Today on Saturday" show, and protests. Sections of Australia's political establishment dismissed the absurd allegations about his "gun lobby connec­ were scared. tions." He laid out, instead, his vision of Australia's crucial On June 3, Deputy Prime Minister Tim Fischer, head of role in the Asia-Pacificregion in the years ahead. the National Party, spent most of the day closeted in "trade talks" with Sir Leon Brittan, vice chairman of the European Her Majesty's ministers Commission. Less than a month before, Brittan and his free­ Queen Elizabeth is the sovereign of both Britain and Aus­ trade policies had come under fire at a major international tralia, whom Brittan and Fischer therefore serve as "Her Maj­ economic conference in Beijing (see EIR, June 14), by a dele­ esty's ministers." But it was the role of a member of her gation led by Helga Zepp LaRouche, founder of the Schiller Canadian Privy Council, Conrad Black, which stamped the Institute and the wife of Lyndon LaRouche. That night in whole attack as "made in Buckingham Palace."

40 International EIR June 21, 1996 Orchestrators of the attack against Lyndon LaRouche in Australia, left to right: Australian media magnate Rupert Murdoch; Conrad Black, chairman of the Canada-based Hollinger Corp., ajront fo r British intelligence; Queen Elizabeth II.

The Hollinger Corp., chaired ' by Black, was originally LaRouche replied, "Well, apparently Mr. Leibler is totally formed in Canada during World War II, when it was known misinformed. I have never had any such views .. ..As a matter as the Argus Corp., as a front organization for the British of fact, for most of my life, I was raised in a part of the United Ministry of Munitions and Supplies. When Black, the son of States, in the Boston, Massachusetts region, and New York its co-founder, took over in' 1985, he renamed it Hollinger, region, where I lived afterward, and the largest single defin­ and started buying up press worldwide, led by the Daily Te le­ able ethnic, shall we say, quality of my associations, have graph in London. been Jewish. I am very much against anti-Semitism, and al­ Hollinger's board is a "Who's Who" of British Intelli­ ways have been, and it is just nonsense. Mr. Leibler just keeps gence, and includes, among others: Baroness Margaret repeating this sort of thing, but there is no basis for it." Thatcher; Sir Henry Kissinger, KCMG; Lord Peter Carring­ One of LaRouche's closest associates for the past 30 ton, director of Kissinger Associates and former secretary years, Anton Chaitkin, whose father Jacob Chaitkin was the general of NATO; Henry Keswick, chairman of Matheson & chief strategist and legal counsel for the American Jewish Co., a pillar of the Jardine Matheson-Hongkong and Shanghai Congress' boycott campaign in the United States in the 1930s Bank complex which sti II runs much of the world's drug trade, against Nazi Germany, confronted Fischer on this and other according to the bestseller Dope, Inc. ; and Sir Evelyn de Roth­ charges, at Fischer's Washington press conference (see Docu­ schild, chairman of N.M. Rothschilds & Son Ltd. mentation). A visibly destabilized Fischer retreated from the Hollinger's Te legraph and associated publications have, most extreme of his claims, so that by the morning of June 9, for the past several years, concocted scandals against Presi­ even the Sydney Morning Herald was reporting, "Meeting dent Wj))iam Clinton in an attempt to drive him from office. with U.S. government and trade officials,Mr. Fischer backed away from his claim that Mr. LaRouche, 73, was behind gun The old 'anti-Semitism' canard lobby protests in Australia." Fischer also charged that LaRouche is "anti-Semitic," a calumny frequently made by Anti-Defamation League-linked The shifting political map of Australia circles in Australia and internationally. Asked, on his June Fischer carried out the Crown's attack on LaRouche be­ 8 TV appearance; about Australian businessman and World cause he is hysterical about losing his rural-centered National Jewish Congress chairman lsi Leibler's claims to that effect, Party base to the fast-growing CEC, as even Australia's press

EIR June 21, 1996 International 41 has noted. Now headquartered in Melbourne, the CEC was Battle of the Coral Sea, and things like that: These battles founded in Queensland in 1988, and still has its strongest were actually key to the war in the Pacific, in World War II; support in rural Australia, where many of the 75,000 copies and, led to the most economical, and most efficient, bit of per month of its newspaper, the New Citizen, circulate. war-making, under the direction of Gen. Douglas MacArthur, But Fischer's party is not the only one in trouble. The in modem history. That is, more was conquered, by MacAr­ Labor Party, which had ruled Australia since 1983, was thur, without the aid of any nuclear bombs, or anything, in smashed at the polls in February 1996, because the electorate that period of time, than by any other commander in World was enraged at its Thatcherite "economic rationalist" policies War II, or in previous wars, approximately previous wars. of freetrade, deregulation, privatization, etc., which have dev­ So, there was a buildup of Australia, under this circum­ astated the country. The Liberal-National coalition is acceler­ stance, which lasted into the 1960s, and stumbled into the ating those same policies, and will therefore self-destruct over 1970s, since which time, Australia has been economically the coming several months as well, leaving an almost-unprec­ demobilized-since the late 1960s, 1970s-and is now a edented political vacuum in all parts of the country, rural and mere fragment of what it had been earlier. urban. As for the latter, the CEC is beginning to make its So therefore, my policy, is that Roosevelt, and Curtin, and presence felt there as well: In Melbourne, the capital of the MacArthur, were right: South Asia, East Asia, are the pivots state of Victoria, it recently spearheaded a two-week mobili­ of the future economyof the world. That's where the popula­ zation against Victorian Liberal Premier Jeff Kennett's plans tion is, that's where the economic growth is going to occur, to decriminalize marijuana, which defeated that proposal because any growth per capita is going to be reflected, on the (see p. 61). grandest scale, in South and East Asia. So therefore, Australia is one of the outposts of European civilization, in the Indian Ocean and Pacific Basin, which is a proper place in which to engage cooperation, that is, maritime Documentation cooperation, with South and East Asia. The British agree, in their own ways. The British view, which is Chatham House's view, came up to a head, in a Lyndon LaRouche made the fo llowing remarks in a radio China conference, Beij ing conference, which my wife Helga interviewwith "EIR Talks " on June 6, regarding the British recently addressed as one of the invited speakers, in which Crown 's vision of Australia 's role in world affairs, and his Sir Leon Brittan, the vice-the man in charge of vice for the own. LaRouche delivered abbreviated versions of these re­ European Union-spoke. And, what these guys have done, marks in an interview with the Australian Broadcasting is, they had a recent conference, sponsored by Lee Kuan Yew, Corp.'s Radio National broadcast Australia-wide on June 6, the former Henry Lee, of London, in Bangkok: the Bangkok and in a nationwide live (satellite) television interview at 8 Asiatic Conference, which is a real evil operation; the worst a.m. (Australia Time) on June 8, on the "Today on Satur­ kind of parasitism. And, in Beijing, Leon Brittan tried to shove day " show. that policy down the throats of China; and, it was not well­ received by the Chinese government, I can tell you that! My My policy toward Australia, is that implicit in the close collab­ wife observed that at close hand. oration among a former prime minister of Australia, Mr. Cur­ But, Britain's idea, as Katherine West, an Australian who tin, and Gen. Douglas MacArthur, and Franklin Delano Roo­ participated in this Chatham House conference recently, who sevelt, back during World War II. At that time, the British produced a paper, has expressed: The British see Australia, government, Mr. Churchill's government, had a policy of a as a mere diplomatic launching-point for doing dirty opera­ protracted war in the Pacific, in which the United States would tions in South and East Asia; whereas, our view is different. continue to war with Japan, into the middle of the 1950s, So, therefore, what's happened is, that the British who are approximately. attacking me from Canada, and every place else the monarchy Under this Churchill policy, Mr. Churchill insisted, that has a means to do so, using my enemies and Clinton's ene­ Australia would allow Japan to invade the territory of the mies, such as the Murdoch and Hollinger press, and the Lon­ continent of Australia, and would reserve only a small portion don Times, and people like that, and the Bush people, to do of Australia, around Melbourne, so to speak, to be defended that, have launched a very savage attack on me, in Australia, by the Australians; sort of like a protracted Tobruk exercise. figuring that perhaps we were vulnerable there. And, they Now, what happened, of course, is MacArthur arrived on tried to get something going against me. the scene, and said, "Let's have none of that," and Curtin, the But, the motivation, apart from all the lies they're just prime minister, agreed. And, with Roosevelt's support, and retailing-the motivation is that I represent, to Australians with help from MacArthur's and Roosevelt's allies in the (and there are many Australians who are like this): Go back Navy, the battle of the Solomon Islands, and similar battles, to Curtin, MacArthur, and Roosevelt. Let's have American­ were engaged. And, Guada1canal was key in that. But, the Australian cooperation, of that type, again, in the new context.

42 International EIR June 21, 1996 Let' s rebuild Australia, and get the job going. A lot of Austra­ Fischer: No. lians like that. Whereas, the London-directed, or, as the Australians call Q: Two questions on this Lyndon LaRouche matter: Is your them, the "pommie-minded Australians," and the representa­ government doing anything to counter the influence of Lyn­ tives of the British Privy Council, who actually run Australia don LaRouche, in all [areas]? And, on the anti-gun control today; these guys are very unhappy. So, they launched this' rally; as they continue, will they get more support, do you massive attack on me, in Australia, both to try to rid Australia think, for their cause, or do you think the public will just get of my influence, and, also, to use that as a springboard for sick of them? attacks on me, again, here. Fischer: It is early days. There is a need for a lot more infor­ It hasn't worked out too well for them, I should say. mation to be circulated; and, the government of Australia is in the process of mounting an advertising, which has not yet The fo llowing are excerpts from the press conference given taken place, which I think will help ease the burden of the by DeputyPrime Minister Tim Fischer in Washington, D. C. situation, it being such a big change in the state of policy on June 6 at the Australian Embassy. Anton Chaitkin is the settings on that matter. reporter fo r EIR. Other reporters are designated "Q. " On LaRouche and other extremist organizations: clearly, the monitoring of our border entry points, to check on the EIR: You said that Lyndon LaRouche had organized the flow of people who might be of criminal record, or otherwise, recent gun lobby demonstrations in Australia. And, we got between Australia and other countries at any time-I specifi­ from Mr. LaRouche his responses. I wanted to get your reac­ cally make that comment with respect to LaRouche. I would tion to it. He said, "Why did you tell this lie? Why are you say, that it's a matter on which there have been some sugges­ babbling nonsense? How can anyone believe you, when you tions, that there should be some federal parliamentary inquiry tell such lies? What makes you think you will have any credi­ into. That is a matter which is probably more likely to be bility at all, when you babble such nonsense?" looked at, at the Senate level, and the Senate has its own And then, just to follow that up: Some people have said jurisdiction in that regard. that you are hysterical about LaRouche, because he has enor­ mous influence in the base of your party, the National Party. Q: If they're just extremists, but not criminal records" can How would you respond to that? they be kicked out of Australia? Fischer: Well, firstly,the question is based on a wrong prem­ Fischer: It's a difficultcall on balance, is always to maintain ise. I did not say, and I would not suggest, that the LaRouche freedom of speech, and democracy, and that is why I listen organization has directly organized the demonstrations. What very closely to the grassroots of my electorate in Australia, I did say, is that they have a pervasive influencein the extreme and across Australia, on a range of issues. So, we, neverthe­ elements, and I don't agree with their agenda. less, and I have genuine concerns about the anti-Semitic ap­ Some of those extreme elements are attracted to proach of a number of these organizations. If I get criticized LaRouche. I give one piece of particular evidence: The for expressing that, so be it; but, it is a case that compromise publication in Australia, Lock, Stock, and Barrel, which is is always in the circumstance of democracy, but if any organi­ a publication out of Queensland, and which is an extremist zation involves illegal activity, obviously it'll be dealt with. publication with regards to weaponry in general, as you might believe from its title, and with regard to guns in Q: Prime minister, you've had a lot of questions today about particular, of course, has carried a number of LaRouche­ Lyndon LaRouche. Are you doing anything to counter his type articles. And, it is a connection which I don't have to influence? Do you think he's a dangerous presence? Would prove, it is a well-known connection, that there is such a he be allowed in Australia? connection between the LaRouche organization and extrem­ Fischer: Well, I'm not sure he's in a position to travel to ist elements in Australia. Australia. I simply am absolutely underwhelmed and unex­ cited by the agenda of the range of extremist organizations of EIR: Getting back to the LaRouche problem: lsi Leibler that ilk. I'm entirely opposed to anti-Semiticism- said- Fischer: Yes, he supported me ! I thought that should have EIR: You can't even pronounce it. been put in a frame. Fischer: I simply .say, there is no place in Australiafo r the type of agenda being pursued by the LaRouche organization EIR: He said that the LaRouche influences are gnawing [emphasis added]. I make no apology for doing so. I have away at your party, and areas of your own constituency. legitimate concerns about that. I will not dodge on that. Would you say that your party is falling apart, in that section of the country where you're confronting the LaRouche Q: Do you think he's anti-Semitic? movement? Fischer: Well, there's some evidence of that. ...

EIR June 21, 1996 International 43 India Front have no mandate to rule in New Delhi, as their bases have actually dwindled in the 1996 vote tally. The Janata Dal party has a strong base in only three major states; its partner, the Samajwadi Party, has a base only in the crucial state of Uttar Pradesh, where it is struggling to remain as the number-two party; and some of the United Front's partic­ ipating regional parties are fast losing ground to the BJP. The 'leftist' United Congress Party politics Front takes the helm The crumbling of the Congress Party has also left the door open for the United Front to come to power. The Congress by Susan Maitra and Ramtanu Maitra Party, which led the movement for India's independence from Great Britain, has ruled in New Delhi for 45 out of the 49 post-colonial years. In the May elections, the Congress Party On June 1, India's President Shankar Dayal Sharma adminis­ lost almost 45% of its parliamentary representation, ending tered the oath of office to the Kamataka state chief minister up with a mere 136 seats out of a total 535. The elections five and Janata Dal party leader H.D. Deve Gowda, as the 11th years ago had returnedthe Congress to power with a working prime minister of India. Prime Minister Deve Gowda will majority of 248 members. be leading an alliance of 14 centrist and regional parties, The leadership crisis within the party, brought to the fore brought together under the banner of the United Front, in with the assassination of former Prime Minister Rajiv Gandhi the aftermath of May general elections which failed to throw in May 1991, has remained unresolved. Bereft of leadership up an outright victor. The left parties, with 55 seats in the from the Nehru-Gandhi family, the party has also run out of Lok Sabha (parliament), and the Congress Party, the second grass-roots leaders. largest party with 141 seats, have assured support to the Before the next elections, the Congress Party may be United Front government. forced to undergo a thorough reorganization. One analysis The 13-day sojourn of the Bharatiya Janata Party (BJP), making the rounds in Delhi is that the Congress Party will which had formed a governmentafter it emerged in the May eventually join the government in 1997. election as the single largest party in the Lok Sabha with One of the major English-language dailies claims that a 160 members, ended on May 28, when Prime Minister Atal deal is being worked out whereby Congress Party leader Behari Vajpayee, facing certain defeat in the Lok Sabha in and its most recent prime minister, P.V. Narasirnha Rao, his quest for a vote of confidence, threw in the towel. Presi­ whose five years in office were rife with allegations of per­ dent S.D. Sharma had given the BJP prime minister-elect sonal financial wrongdoings of massive proportions, will be an ultimatum to prove his government's majority on the nominated as the next President of India by the United Front, floor of the Lok Sabha by May 27. and will seek immunity under the Constitution to remain Wasting no time following Vajpayee's resignation, Pres­ free. Once such deals are worked out between the United ident Sharma called in H.D. Deve Gowda, who by then had Front and the Congress Party, the latter would formallyjo in emerged as the consensus candidate of the United Front, the cabinet. The Janata Dal would then merge with the and asked him to form the government. The Congress Party Congress Party and obliterate itself. A few other smaller had already made known its disinclination to form a gov­ parties may also come back to the Congress fold, in order ernment. to counter the BJP electorally. The United Front government has been extended a re­ served welcome by the people and media in general. Such What next in India? caution is based on the abj ect failure of two past experiments, Visible conflicts within the United Front in the firstdays in 1977 and in 1989, when the anti-Congress parties had have already caused concern. Hours before the cabinet mem­ hatched a common front to grab power. In both cases, the bers were scheduled to take the oath of office, the regional fronts disintegrated within months, because of internecine party chieftains and state-level leaders of the centrist parties fights among the coalition leaders, bringing India to near exerted pressure on the prime minister-elect to secure plum chaos as a consequence. And in both cases, fresh elections posts. Behind the scenes was former Prime Minister V.P. brought the Congress Party back into power. Singh, a manipulator par excellence, whose reckless caste This time, most of the centrist parties and the Leftparties politics had brought down the 1989 experiment amidst vio­ had come together under the principal objective of prevent­ lence and chaos. ing the "Hindu chauvinist" BJP from forming the govern­ In this set-up, Prime Minister Deve Gowda himself is ment. Otherwise, the major parties represented in the United definitelythe most reliable element. For the last 17 months,

44 International EIR June 21, 1996 he has been chief minister of Karnataka state, which is fast becoming a major industrial state, with the city of Bangalore emerging as the country's capital of clean industries. With a diploma in civil engineering, Prime Minister Deve Indian elections: Gowda represents the villager caste, and had worked side-by­ side with his father, a paddy farmer, in his youth. Following shiftingvote patterns a short stint as a contractor, Deve Gowda joined politics in 1953 as a member of the Congress Party. However, his first by Susan Maitra and Ramtanu Maitra entry to the state legislative assembly in 1962 was as an inde­ pendent, having severed his relationship with the Congress Party back then. The nation of India today stands as the world's largest de­ With Janata Dal establishing itself as the ruling party in mocracy, a fact that is at the core of India's identity as an Kamataka in 1983, Deve Gowda, along with S.R. Bommai independent nation. The election results that trickled in (now a minister in the Deve Gowda cabinet) and the high­ slowly during the week following the last election (May 7; profile former Kamataka chief minister Ramkrishna Hegde, the other two were April 27 and May 2) showed that the emerged as one of the triumvirate that holds the key to the Indian electorate has refused to pin its hopes on any sin­ party's political successes. Despite the Rajiv Gandhi-led Con­ gle party. gress Party onslaught that almost decimated the Janata Dal in Unlike the past four or fivegeneral elections, particularly Kamataka in 1987, the efforts of Deve Gowda, Bommai, and the elections of l977, 1980, 1989, and 1991, this time around, Hegde brought the party back to power at the state level in the Indian electorate was not charged up to remove the ruling 1991. party in order to bring in some other party just for the sake In 1994, Deve Gowda was the only Indian chief minister of a change in government. There was no "wave" as such. who attended the World Economic Forum in Davos, Switzer­ In addition, the Election Commission enforced the maxi­ land, ostensibly to attract foreign investment into Kamataka. mum expenditure of 450,000 rupees (about $13,500) per Another of his forays, into Singapore, resulted in the first-ever parliamentary candidate, making the election a low-key af­ high-technology Information Technology Park in Bangalore. fair. The Election Commission thus took away the money At the same time, it was noted that, despite the Janata Dal's power of some of the wealthier parties to influence votes. formal opposition to the establishment of the Cargill office Interestingly, the low-key campaigning did not result in less and the Kentucky Fried Chicken outlet in Bangalore, chief participation by the electorate. minister Deve Gowda protected these multinational ventures Although the poll results appeared to perplex the political to boost his state's image with foreign investors. pundits, the voting patterns cohered with a growing trend that has appeared among the voters in both 1989 and in 1991. A common minimum program In the 1989 elections, the ruling Congress Party, led by So far, in New Delhi, Deve Gowda is drafting a common the late Prime Minister Rajiv Gandhi, was soundly defeated. minimum program (CMP) for the infrastructure sector, which From an unassailable majority in the Lok Sabha (parliament) emphasizes implementing environmentally friendly policies with 405 members, secured in the 1984 elections following and greater support for science and technology. The draft the assassination of Prime Minister Indira Gandhi, the party said that "economic stability, responsive and corruptionless was reduced to a minority party with fewer than 200 seats. administration along with acceleration of reforms," would be But while rejecting the Congress Party, the electorate did the major plank for governingIndi a. not indicate a positive winner. A rag-tag group of former On the issue of taking those measures recommended by congressmen formed the Janata Dal and took power, with the the InternationalMonetary Fund to adapt the Indian economy outside support of the surging Bharatiya Janata Dal (BJP). to free-trade globalization, an issue which interests the inter­ The dismissal of the Janata Dal government within a national investors and financial institutionsas much as it inter­ year, and the upheavals that followed, set the tone for the ests their Indian counterparts, Deve Gowda is categorical that 1991 elections. The tragic murder of Rajiv Gandhi during so-called economic reform would continue with a "Gandhian the 1991 election campaign, and the collapse of the Janata face"-an expression which has yet to be defined. Undoubt­ Dal, gave the Congress Party enough parliamentary seats to edly, his appointment of P� Chidambaram, a Harvard-trained form the government. former member of the Congress Party who was a close associ­ But even then, the BJP, increasing its tally from 86 in ate of the late Rajiv Gandhi, and one of the strongest backers 1989 to 124 in 1991, had served notice. of the liberalization policies of Narasimha Rao and outgoing The trend has in fact continued: The Janata Dal and its Finance Minister Manmohan Singh, will reassure the free allies took 43 seats, the Congress Party went down to 136 traders in London and other westerncapita ls. seats, and the BJP inched further upward with 160 seats.

EIR June 21, 1996 International 45 Caste politics has also continued to emerge as a signifi­ to their domestic competitors. Besides the BJP's demand for cant factor for the electorate. The 1989 regime of united a "level playing field" for national producers by enhancing front guru V.P. Singh had unleashed a cauldron of caste import tariffs,the party called for spending at least 6% of the politics, which was capitalized upon by the leading non­ country's GDP on programs such as education, maintaining Congress and non�BJP parties. In 1996, caste considerations fertilizer subsidies, using 60% of plan funds for agricultural­ contillued to elect or defeat candidates in northern India, rural development, laying the foundation for a debt market to particularly in Bihar and eastern Uttar Pradesh. The role of finance infrastructure and then invite foreign capital into the minority Muslims was less discernible in this election, but sector, pruning non-developmental expenditure, minimizing there is little doubt that a large number of poor and downtrod­ commercial activities of the government, and cutting back den Muslims in the states of Bihar and Uttar Pradesh backed on bureaucracy. the candidates identifiedwith the lower castes. Nevertheless, The BJP is thus most vocal on behalf of the small and in Uttar Pradesh, the BJP gained another 23 seats to reach medium-size industries which are in panic following the Rao 85 MPs from that state. liberalization policy. The BJP is also consistently strong in On the other side, in the Maharashtra city of Mumbai, pointing out India's poor infrastructure and the previous gov­ where the BJP-Shiv Sena combine won heavily, a significant ernment's policy of welcoming multinationals into India's number of Muslims in fact voted for the BJP-Shiv Sena consumer sector, instead of attracting a significant amount of combine. foreign direct investment into the core infrastructural sectors Aside from the BJP, the only other groupings to show where it is most urgently needed. gains in the election were the purely regionally based parties. The ruling Congress Party promised to carry forward eco­ These include the Communist Party of India-Marxist nomic reforms and restructuring policies to achieve 8-9% (CPI-M), in West Bengal; the Telegu Desam Party (TDP), GDP growth annually and near-full employment by the year in Andhra Pradesh; the DMK or ADMK, in Tamil Nadu; 2002. The Congress Party was also vocal about the farm sec­ the Asom Gana Parishad (AGP), in Assam; the Janata Dal tor, including promising to do the impossible-computeriza­ (JD), in Bihar and Kamataka; the Samajwadi Party and the tion ofland records in consultation with states. Cautious about Bahujan Samaj Party, in Uttar Pradesh; the Shiromani Akali future measures vis-a-vis the economic liberalization, the rul­ Dal, in Punjab; and the Samta Party, in Bihar. ing party manifesto assigned high priority to restructuring A harmonious chord was definitely struck between the the public sector. The manifesto mentioned nothing of such regional parties and the electorate. In the south, the issue of controversial policies as disinvestment of public sector enter­ water and power is of primary importance, and all the re­ prises, restructuring of labor laws, and the speed of reforms gional parties in the southern states have an ongoing feud in the financial and industrial sectors. with Delhi because of the latter's inattention to the crisis. True to its tradition, the Janata Dal pushed such populist Instead of deriding the apparent parochial behavior of the policies as "right to work," forging economic solidarity with electorate, national politicians would do better to heed the the developing world, and reviewing and reversing existing message being delivered. reform laws.

Economic platforms Give the dog a bad name, and hang him The Indian population is also beginning to register its The pattern of growth in votes of the BJP, widely de­ response to the policies of "liberalization," carried out by scribed in the foreign media as a "Hindu fundamentalist" and the Rao governmentunder the direction of Finance Minister "Hindu extremist" grouping, has set a cat among the pigeons Manmohan Singh. While these policies have loosened the within India's political system. Considered an "untouchable" socialist grip on the Indian economy held by the overbearing because of its virulent anti-Muslim rhetoric and the support governmentbureaucracy, it also has brought in foreign multi­ it had lent to the violent destruction of the Babri Masjid, for nationals in useless ventures in the consumer goods sector the purpose of building a Ram Temple at the same location, and has begun the process of opening up India to free-trade the BJP still touches a raw nerve in many Indians who were globalization. At the same time, the supposed benefitsofliber­ brought up and tutored in the Fabian socialism introduced alization have not trickled down to India's poor. into the Indian scene by Jawaharlal Nehru, the first prime The BJP took a definite critical stance against the ruling minister of India. Most leaders of the present Congress Party party's foreign investment policies, which, according to their and of the Janata Dal, Samajwadi Party, et aI., belong to the observation, allowed "hot money" to come into the country same school of political thought. Indian communists joined and did not encourage foreign direct investments in the re­ the Fabian school without much fuss. For all of these politi­ quired sectors, such as non-consumer durables and enhancing cians, the rise of the BJP is a serious threat to their existence. the technological base in that sector. The BJP was highly The BJP of today is a variant of its original form, the Jana critical of the multinationals which, according to their cri­ Sangh, and carne into existence in the early 1980s following tique, are extracting benefits which have not been extended the end of the Janata party rule in 1980. The Jana Sangh,

46 International EIR June 21, 1996 formed in 1952, was always controlled by the cadre-based of northern states put the party in a quandary. The issue at Rashtriya Swayamsevak Sangh (RSS), an ideological group­ stake for the leadership: While the party has a large following, ing promoting Hindu consciousness. The RSS was never in­ it could never be a national party unless its image as an anti­ terested, in earlier days, in participating in the political sys­ Muslim party is removed and it can participate in an educated tem, and, although Jana Sangh ran in the parliamentary manner on the major national issues concerning poverty, elections, it remained a party with only pocket boroughs. Its economy, security, and defense. dogmatic promotion of Hindu consciousness in a country Since the Babri Masjid incident, the BJP leadership has which was recovering from the partition by the British colo­ attempted to deflect the radical pressure and focus on activi­ nial rulers in 1947, pitched it in direct confrontation with the ties which identify the party as a serious contender for the Muslims and secular forces of the Indian National Congress. nation's leadership. Garnering support mostly from the 40 million or so Hin­ In the 1996 elections, the BJP improved its position in the dus who had fled Pakistan following the partition, the Jana Lok Sabha from 124 to 160 seats, and was the only major Sangh remained an anti-Muslim party, spewing venom party anywhere to make gains in this general election. This against the Muslims for cutting up the country-rather than suggests that the BJP strategy has worked and the politics of blaming the British. The initial success of Nehru's develop­ caste division, introduced in 1990 as a measure primarily to ment policies and of Indian foreign policy, with India being weaken the BJP, has failed to catch on-although, it will not at the center of the non-aligned movement in a hostile Cold be easy for the BJP to shed its anti-Muslim image. War situation, kept the Jana Sangh on a leash. By and large, The Indian electorate, democratic to the core, is not yet Hindus did not see the Muslims in India as a threat, and found convinced that the BJP is for real, but it is surely changing its little reason to support a marginal political grouping dedicated view about this "Hindu fundamentalist" and "Hindu commu­ to disparaging the mostly poor Muslims who had no other nalist" party. A large part ofIndia-such as the states located home but India. in the east, of Assam, West Bengal, Andhra Pradesh, Orissa, The beginning of the weakening of the Congress Party, Tamil Nadu, Kerala, and a few other small states-has not brought about by the late Mrs. Indira Gandhi through the given a single seat to the BJP. misuse of power during the Emergency Rule in 1975-77, pro­ vided an opening to the anti-Congress Party "secular" forces The British are upset and the "Hindu fundamentalist" Jana Sangh to come to power The dose of moderation and a responsible approach to in 1977. The collapse of the Janata party in 1979 and the national politics ushered in by the BJP leadership under Atal subsequent resounding electoral victories of the Congress Behari Vajpayee, L.K. Advani, Murli Manohar Joshi, and K. Party under Indira Gandhi, and, later, under Rajiv Gandhi, Govindacharya, among others, have created new enemies. weakened the political power ofthe Jana Sangh further. Rein­ In Britain, the BJP's ascendance to power has been under carnatedas the Bharatiya Janata Party (BJP), the party began hysterical attack in the media. The Timesof London, worried seriously to build its political machinery for the first time in about "Hindu militants with nuclear bombs" (read: BJP), said, the mid-1980s. in its May 10 editorial, that a Left coalition is preferable, and hoped that "with luck India will escape the trap of Hindu The Babri Masjid incident militancy." The London Guardian called for containment of The BJP's initial success, however, centered around its "Hindu chauvinism represented by the BJP," and the Daily campaign to remove the Babri Masjid-a 16th-century Telegraphhighlighted the dangers of confusion and divisions mosque allegedly built over a Hindu temple during the Mo­ within Indiacaused by the BJP. ghul days, which has been disputed since the time of the Although the British media were citing the BJP's anti­ British Raj-and build in its place a temple of Ram, one of Muslim image as a threat to tear the Indian subcontinent apart, the incarnations of Lord Vishnu in Hindu mythology. The what was probably of greater concern, is the BJP's strong campaign, which resulted in the violent demolition of the anti-multinational, pro-nationalist economic outlook. Such mosque in 1993 during the Rao government,began to recruit a British groups as Lever Brothers, Lipton, and Brooke Bond whole gamut oflumpen masses demanding Hindu revivalism. have long been present in India in strength, and are planning The 1989 and 1991 elections saw the BJP riding high on the expansion in the wake of economic liberalization. Hindu revivalism campaign, with a liberal sprinkling of anti­ The British are also worried that the establishment of the Muslim vitriol and a tough position against Pakistan on BJP as a genuine national party, means that Britain may have Kashmir. to deal with a coherent leadership of a large party, instead of The violent fall of the Babri Masjid, however, confronted a cobbled-together group of politicians with small political the BJP with a serious crisis. The BJP never owned up to and bases and high ambitions. In addition, the BJP' s opposition to even denounced the demolition of the mosque. Nevertheless, a comprehensive test ban treaty (it would not sign the Nuclear the educated class leftthe party in droves. The subsequent Non-Proliferation Treaty, unless it were part of global disar­ drubbing that the BJP received in the assembly in a number mament), and its position to officially declare India a nuclear

EIR June 21, 1996 International 47 state, makes the cold warriors and the colonial powers uneasy. If the British are unhappy with the BJP because it may prevent them from making a fre sh bid to loot India in the wake of economic liberalization and globalization, the Anti­ Defamation League-linked Abe Rosenthal's outburst against the BJP in the New York Times was indicative of the hatred Turbulence aheadfo r that the liberal establishment is capable of spreading. Equat­ ing the BJP moderates with the German SS, Rosenthal said that "these people [the BJP] are Hindu-firstand Hindu-only­ Romania, Bulgaria which would wipe out the concept of unity between the Hindu by Konstantin George majority of 700 million and the Muslim minority of 120 mil­ lion and Christians and Sikhs." Rosenthal warned that the electorate's verdict leads to the dangers to Indian nationhood If there is no break in the shock therapy policies of the and the possibility that "Indian civil society could again be­ International Monetary Fund (IMF), a crisis with potential come Indian civil war." strategic ramifications is set to sweep Bulgaria and Romania But those who will indulge in such chaos-mongering this autumn, when Presidential elections are scheduled in should realize that the electorate, which has steadily elimi­ the former, and both Presidential and parliamentary elections nated the Congress Party from the populous Ganga Valley­ in the latter. The first storms were visible in the Bulgarian the Congress Party having secured only 16 of the 179 national Presidential primary and the Romanian nationwide munici­ parliamentary seats that represent Uttar Pradesh, Bihar, and pal elections, both held on June 2. West Bengal-may be ready to politically eliminate those who will promote chaos and instability. They have voted for Bulgaria: Who will oppose the IMF? ·r political stability, and not against economic reforms, and they In Bulgari a, a pauperized and angry electorate gave in­ see in the BJP, the largest and the only growing party, the cumbent President Zhelyu Zhelyev the boot in a primary party that can provide stability. vote that determined who in the United Democratic Front (UDF) would be its Presidential candidate in the autumn elections. Zhelyev was trounced, receiving only 34% of the vote, losing to the 44-year-old relatively unknown lawyer, Petar Stoyanov, who got 66%. The reason behind Zhelyev's Derivative debacle is not hard to find. He is one of the main people responsible for the destruction of Bulgarian living standards Assassination: under six years of IMF-imposed "reforms." The UDF is the main opposition party to the current government of the ex-communists, called the Bulgari an So­ Who Killed cialist Party. The UDF had formed Bulgaria's first post­ Indira Gandhi? communist government. It discredited itself in the firstphase of shock therapy implementation, and thus, as in so many by the Editors of other cases in eastern Europe, set the smge for the return Executive Intelligence of the former communists to power. Given the different Review schedules for parliamentary and Presidential elections, Bul­ Order from: garia has a BSP government with an absolute majority in EIR News Service, Inc. parliament, and a UDF President. P.O. Box 17390 Washington, D.C. Ironically, the UDF, with its new candidate, Stoyanov, 2004 1-0390 could very well win the Presidential election. Bulgaria has been no exception to the rule that wherever the former com­ or call: Ben Franklin munists were returned to power in easternEurope, based on a Booksellers, Inc. popular backlash against the "reforms," the ex-communists, (800) 453-4 108 once in power, proceeded to pursue and even to accelerate (703) 777-366 1 the very same IMF policies. The BSP regime of Prime fax (703) 777-8287 Minister Zhan Videnov, during this year, has implemented $4 .95 plus shipping ($1.50 for the most draconian austerity measures to date. This has first book, $ .50 for each been done in accordance with conditions set by the IMF for additional book). Bulk rates available. Bulgari a to receive a standby loan and thus prevent, or paper over, an imminent state bankruptcy.

48 International EIR June 21, 1996 The latest austerity measures were passed at the end of Otherwise, the PDSR failed to capture any major city. May. The value-added tax (V AT) was increased from 18% except for Galati, in the first round. In Romania, as in Bul­ to 22%, and fuel prices were raised by 80%. New import garia, there has also been a process of discreditation of taxes were set, adding to the already steep rise in the price most of the parties and institutions associated with post­ for anything imported, caused by this year's collapse of the communist parliamentary democracy. Beyond the very low national currency, the leva. Protests in the streets of the voter turnout, another indication of this was the very good capital, Sofia,by thousands of trade unionists and pensioners, results achieved by extreme nationalist/fascist figures, such are now commonplace. The desperation of the population as Gheorghe Funar, a ferociously anti-Hungarian dema­ and the discrediting of parties and institutions, were most gogue, who won the mayoralty of the Transylvanian city of strikingly demonstrated in the huge welcome that over Cluj on the first round, with 50.7%. 100,000 people accorded to Simeon II, the former king of As can be seen from the events and results thus far in Bulgaria, who returned to Sofia in May after 50 years of Bulgaria and Romania, the former communist part of the exile. eastern Balkans is moving rapidly into a political phase On top of the latest inflationary collapse of living stan­ change. Unless Western governments, led by the United dards, critical items are now in short supply. There are severe States, move to free these countries from the shackles of shortages of bread and gasoline. Rallies, often addressed by IMF shock therapy, and serious development projects are Stoyanov, regularly demand that the government resign and instituted, these countries are programmed to repeat the Bal­ new elections be held. His message is: "Bulgaria is at the kans' experience of the last Great Depression, when fragile brink of a catastrophe. There is no hope, no fuel, no bread." and unstable "democracies," under brutalization of the con­ All three of Bulgaria's opposition parties, the UDF, the ditions of life, fell like nine-pins. They were replaced by People's Union, and the party of the Turkish minority, the fascist dictatorships, each characterized by demagogic na­ Movement for Rights and Freedoms, have called for a vote tionalism, including oppression of ethnic minorities and irre­ of no confidence against the BSP government the week of dentism. June 10. The BSP will survive this round, having an absolute The potentials for more "Yugoslavias" are lurking, majority in the parliament. However, no institution commit­ months or a few years down the road. ted to IMF policies can survive the turbulence to come during the second half of the year.

Romania: chaos and confusion Romania on June 2 held the firstround of its firstnation­ wide municipal elections in four years, and the results can be described as chaos and confusion. (These elections were LaRouche only the firstround, so a fu ll evaluation will only be possible after the June 16 run-offs.) Campaign The results are unknown in more than two-thirds of the country's municipalities, including most of Romania's major Is On the cities. In more than one-third of the municipalities, the first round will have to be repeated, as fewer than 50% of the Internet! voters took part. In another one-third of the municipalities, including the capital, Bucharest, a run-off vote was sched­ Lyndon LaRouche's Democratic presidential pri­ uled for June 16. mary campaign has established a World Wide What did clearly emerge, was a strong vote against the Web site on the Internet. The "home page" brings ruling Party of Social Democracy (PDSR) of Ion Illiescu, you recent policy statements by the candidate as the former "reform" communist who took over from deposed well as a brief biographical resume. dictator Nicolae Ceausescu in December 1989. His party has ruled RomaniJ ever since. Their spectacular bid to cap­ U.iijf!it!U the LaRouche page on the Internet: ture the Bucharest mayoralty by running former tennis super­ http://www.clark.netllarouche/welcome.html star Ilie Nastase as their candidate, floppedin the firstro und. Nastase trailed behind Victor Ciorbea, candidate of the main U.ldWU the campaign by electronic mail: moderate opposition party alliance, the Democratic Conven­ tion, led by Emil Constantinescu, who is a Presidential candi­ larouche@clark.net date for the coming elections. Barring fraud and voting Paid for by Committee to Reverse the Accelerating Global Economic irregularities (which in Romania are quite common), Nastase and StrategiC Crisis: A LaRouche Exploratory Committee. will probably go down to defeat on June 16.

EIR June 21, 1996 International 49 The strategic gambits behind France's 'Cheminade case,' 1990-9 1 by Mark Burdman

We have recently reported on the close link between French his composure, in the spring of 1990, he had come up with a President Jacques Chirac's cowardly tum toward appease­ fallback strategy, helping architect what soon came to be ment of Great Britain, in a new "Entente Cordiale" relation­ known as the Maastricht Treaty. Maastricht is a design to ship, and a growing pattern of attacks on former French "contain Germany," as well as to destroy the economies of Presidential candidate Jacques Cheminade, the associate of westernEuropean nations through the imposition of massive Lyndon LaRouche. As we indicated in "Chirac Forges New austerity and budget-cutting measures. 'Entente Cordiale' with the British" (see EIR, May 31), there Mitterrand's actions throughout this period, are ofthe sort has been a repeated pattern, over the past ten years, of attacks classically adopted by the "Entente Cordiale" faction in the on 'eheminade, and his associates in France, coinciding with French political class over the past 100 years. As with the important negative turns in French government economic original Entente Cordiale that was formalized with Great Brit­ policy or global strategy. Here, we review a series of events ain in the years leading up to World War I, and which was a in 1990-91, the period coinciding with then-French President key factor in causing that war, the idea is for the French to Fran�ois Mitterrand's shameful abandonment of the funda­ play the junior partner, in a strategic arrangement with the mental strategic tenets of Charles de Gaulle in favor of British Empire. From this standpoint, it is clear that Mitter­ French cooperation with the countries of the Third World rand, and those in Britain who utilized him as a British asset, aspiring to development. Instead, Mitterrand fully aligned would not at all be happy with what LaRouche was doing, France with the "new world order" and "Gulf war" policy of and the potential impact this would have in France. British Prime Minister Margaret Thatcher and U.S. President In 1989-90, LaRouche, of course, was incarcerated, a po­ George Bush. litical prisoner of George Bush. From his prison in Rochester, Mitterrand was to celebrate his illicit relationship to Minnesota, LaRouche celebrated the reunification of Ger­ Thatcher and Bush, in one of his last acts as he was dying many. Afterall, on Oct. 12, 1988, he had made a speech at the of cancer, by traveling to Colorado Springs, Colorado, for Kempinski Bristol Hotel, in Berlin, forecasting the coming an Oct. 8-9, 1995 conference sponsored by the George Bush reunification of Germany, in the context of the situation cre­ Presidential Library Foundation. He did so, despite his ex­ ated by the ever-worsening collapse of the economies of the treme personal circumstances, he told journalists, "out of Communist bloc. LaRouche's bold proposal in Berlin was friendship for George Bush." As we indicated, that gathering exemplary of the kinds of policy leadership he was taking, was probably the site for decisions taken to escalate attacks that enraged the Bush-Kissinger crowd, and had already led on Cheminade, in 1995-96. them to engineer his judicial railroad, as shown by his indict­ ment by an Alexandria, Virginia federal grand jury on Oct. Mitterrand's obsessions 14, 1988. It seems, as the "Cheminade case" demonstrates as We begin, here, by reconstructing the state of mind of well, that such policy interventions touch a very raw nerve, Mitterrand, Thatcher, Bush, and friends, from late 1989 into indeed. 1990. As most recently confirmed in the memoirs of former In November 1989, LaRouche launched his program for French Presidential adviser Jacques Attali, Mitterrand was in infrastructure and infrastructure-corridordevelopment ofEu­ an extreme state of nervousness about the newly reunified rasia, a bold initiative centered around the "Triangle" region Germany. When it became obvious, in late 1989, especially of the European capital cities of Berlin, Vienna, and Paris. with the fall of the Berlin Wall, that Germany was going to Implementation of such a policy would make of Eurasia, the be reunified, Mitterrand went into a frenetic deployment, to motor for a new era of global progress and development. Such head this off. When his diplomatic efforts in the direction of were the promises that that time held, and which were seized the East Germans, Russians, and British failed to prevent upon by LaRouche. reunification,he was devastated. By the time he had regained Given that one of the three vertices of the Triangle is the

50 International EIR June 21, 1996 capital of France, LaRouche was obviously projecting a key So why, then, did the French Justice Ministry, i.e., an role for the French nation, in his "Grand Design." Such think­ agency of the French state, insist on a criminal indictment? ing was very much in the tradition of Charles de Gaulle, espe­ What was President Mitterrand's direct role in this decision? cially as de Gaulle had promoted a post-World War II recon­ Unfortunately, this is one of the many secrets he has taken ciliation with the (West) Germans, as the basis for European to the grave. But the following coincidences must be kept development and security. in mind. Intent on destroying anything that might be associated with de Gaulle, the Mitterrand clique certainly understood The giant fraud of Carpentras the potential effect, as a crucialpolicy conception, that the On May 10, only five days before the Justice Ministry Triangle proposal would have in France. They didn't appreci­ move, the entire French nation had been turned upside down, ate LaRouche's contribution, especially because they un­ by reports that a Jewish cemetery had been desecrated in doubtedly had assumed that he had been "silenced" when put the small village of Carpentras, in southern France. Despite in prison. the fact that the local Jewish community in Carpentras Should the Triangle proposal gain ground in France, it pleaded for restraint from the French authorities, Interior would undermine a century's worth of geopolitical axioms Minister Pierre Joxe, a close ally of Mitterrand, immediately held by a predominant element in the French political class. organized a giant media extravaganza, rushing to the scene Rather than endorse this proposal, the Mitterrand clique con­ with the obvious intent of hyping the situation up, as much spired, with Bush, Thatcher, and the Mikhail Gorbachov as possible. Joxe declared to the press: "We know the guilty, clique in Moscow, to shift the global geopolitical terrain. It is and it's anti-Semitism and racism." Literally minutes after out of that series of considerations, that, first, the Gulf war the news had been made public, the World Jewish Congress, against Iraq was launched in 1990-91, and, second, the war in headed by liquor magnate Edgar Bronfman, went into mobi­ former Yugoslavia was triggered in the early summer of 1991. lization, inside France and internationally. Large-scale dem­ onstrations were launched, expressing solidarity with the A demand from the Ministry of Justice French Jewish community, against the "anti-Semitism and From this overview, certain crucial things about the racism" denounced by Joxe, as well as against "neo­ "Cheminade case" begin to fall into place. Nazism." On May 15, 1990-a most interesting date, as we will see The problem is, the whole affair, as it was portrayed by below-the French Ministry of Justice, through the agency Joxe, Bronfman, and the other orchestrators of the events, of the "Prosecutor of the Republic for the Tribunal de Grand was a giant hoax. Slowly but surely, the truth emerged: The Instance de Paris," demanded that French Judge Lheraut in­ state attorney of the city of Nimes revealed that the highly dict Cheminade and three associates, in a case that had been publicized "impaling with a garden stake" of a corpse dug kicking around for almost four years, and for which Lheraut up from the cemetery, had never, in fact, occurred. This was the responsible magistrate. The letter demanding that report had, originally, been a key factor in horrifying French Lheraut so act, was sent by Assistant Prosecutor Fran�ois public opinion. It was also revealed, over the weeks follow­ Foulon, a man with some curious connections, as we will see ing May 10, that Christian graves in the same cemetery had in a moment. also been desecrated, so Jews were not a sole target. Third, On the face of it, the case was ludicrous. It involved the the much-publicized stories of "the painting of the grave­ family of Mrs. Denise Pazery, who had died in 1986. She had stones with anti-Semitic slogans and swastikas," also did been a financial contributor to four organizations with which not correspond to the facts. Gradually, it emerged that inves­ Cheminade was associated. Mter her death, the family initi­ tigations were looking into a "satanic cult" as responsible ated a proceeding, claiming that Mrs. Pazery had Alzheimer's for the desecrations, rather than "neo-Nazis" or specifically disease, and had been, effectively, a victim of theft by "anti-Semitic" groups. Cheminade and friends. The doctor who provided an "expert In ensuing years, "Carpentras" has become synonymous judgment" supposedly confirmingthis claim, Dr. Michel Du­ with media-concocted fraud. Alfred Grosser, the prominent bec, a self-professed expert on the subject of "major swin­ expert on Franco-German affairs at the Institute of Political dlers," has just authored a book, listing Assistant Prosecutor Sciences at Sorbonne University in Paris, whose German­ Foulon as one of his close collaborators, in composing his Jewish family had to escape from Nazi persecution in the work! Indeed, the case was "all in the family." 1930s, recently cited the Carpentras episode as a classical The concernof Mrs. Pazery's greedy family was, suppos­ case of media orchestration of a fraudulent coverage of , edly, to "recover the money." By December 1989, they had events. expressed a willingness to settle, in exchange for a monetary Despite the gradual emergence of the truth about Carpen­ sum. Even though the sum requested was large enough to tras, the damage had already been done. The main purpose amount to a form of extortion, the point is that the family of the exercise, as soon became crystal clear, was to bring evidenced a desire for a civil settlement. about a mood-shift in the French popUlation, to prepareit for

EIR June 21, 1996 International 51 certain things to come. It was Carpentras, and its immediate ates of responsibility for the assassination of Swedish Prime fallout, that guaranteed that France, a country with tradition­ Minister Olof Palme. ally good ties to various Arab countries, including Iraq, would be on the "right side" when a Middle East crisis The ADL recruits within would come. the LaRouche movement Is it "over-conspiratorial" to assert that the higher eche­ Meanwhile, the British, Bush's friends in the United lons of the French elites were aware that a giant crisis was States, and their counterparts in France were up to a dirty trick, building in the Middle East? Not in the least. As Pierre recruiting and cultivating a pro-British, pro-Anti-Defamation Salinger would later document in a retrospective book on League "defectors' movement" among LaRouche's associ­ the Gulf war, the reality that the Gulf-Middle East region ates. At the very moment when the Gulf war became inevita­ was irreversibly heading toward a major international crisis, ble, this faction split from LaRouche, on the basis of full had already become apparent to Palestine Liberation Organi­ support for the Gulf war, accusing LaRouche of being a zation Chairman Yasser Arafat and other Middle East influ­ "right-wing anti-Semite." Some months later, two of those entials, by mid-May 1990. dissidents, Laurent Murawiec and Robert Greenberg, au­ Is it "over-conspiratorial" to draw a connection between thored articles on "anti-Semitism in the United States." Dem­ the Carpentras mobilization of the corrupted Mitterrand cir­ onstrating not simply amnesia but also cowardice, the authors cle et aI., the May 15 Ministry of Justice move against conveniently omitted the fact that they had, each, been associ­ Cheminade, and foreknowledge among relevant French ates of LaRouche for almost two decades, and simply cited the elites that a major Middle East crisis was coming? Not in degenerate ADL-controlled scribbler Dennis King, as their the least. Two other considerations must be kept in mind, "source" about the LaRouche movement. This appeared in a about this April-May conjuncture. book (L'Histoire de L'Antisemitisme, 1945-1993) edited in France by "historian of anti-Semitism" Leon Poliakov, con­ The 'Pamyat-LaRouche' hoax taining a series of articles supposedly explaining the origins It is obvious that some special operations were being of anti-Semitism (see "The Poliakov File: History as British cooked up against the LaRouche movement's branches in Propaganda and Fraud," E1R, Aug. 26, 1994). Europe, at this time. Over the weekend of May 6-8, 1990, Murawiec has, in the past couple of years, been a leading that is, immediately preceding Carpentras, the World Jewish figure in a suspicious "consulting firm," headquartered in Congress held its annual meeting in the newly unified city Geneva and Paris, called Geopol, SA, several of whose direc­ of Berlin. Bronfman was in attendance, as were his leading tors or patrons, have found themselves either in jail, or under henchmen, such as Australia's lsi Leibler, who is, as of this investigation by Swiss or international law enforcement au­ writing, conducting a psychopathological attack on thorities. LaRouche's associates in Australia. The main purpose of the Berlin event was to pressure M. Joxe's emissary pays a visit German Chancellor Helmut Kohl. The meeting was punctu­ How all these various factors are interconnected, becomes ated with warningsabout potential outbreaks of neo-Nazism obvious from one episode later in 1990, bringing together and anti-Semitism across Europe. With Carpentras coming Joxe, Mitterrand, and the Gulf war. only two days after the WJC event in Berlin concluded, they In late October, Judge Lheraut made the strongest possi­ would have what they wanted. ble decision in French law, to dismiss the charges against But there was also a curious sideshow in the Bronfman Cheminade and associates. Within a couple of days, the circus. A delegation of Russian collaborators of the WJC French authorities moved for appeal. This, of course, was at attended the Berlin conference, bringing with them a Russian­ the height of the period building up to the Gulf war. Two language document, purporting to demonstrate that the months later, on Dec. 28, as Bush and friends were moving LaRouche movement in Europe was in active collaboration to the military phase of their war of "the world against with the anti-Semitic, proto-Nazi Pamyat movement in Rus­ Saddam," a press officer of Joxe's Interior Ministry, one M. sia. This was based on a supposed press conference by a Lebars, visited the officesof the LaRouche-associated Nou­ leading Pamyat creature, in which he supposedly gushed that velle Solidarite newspaper in Paris, and asked for a copy of he was collaborating with western European groups, an article Cheminade had written, some months earlier. In By a series of unforeseen developments, the document that article, Cheminade had likened President Mitterrand's never saw the light of day in Berlin, but instead was procured behavior in the Gulf crisis, to France's actions against Egypt, by a representative of ElR in attendance. An E1R mobilization, in the neo-colonial Suez adventure of 1956. It seems that at the time, preempted what was obviously intended to be an Monsieur Le President was not amused. The "mechanisms of international campaign, not dissimilar to that concocted by justice" were set in motion, to ensure, some years later, that the East German, Soviet, British, and other intelligence ser­ Cheminade and three associates would be convicted, on the vices, back in 1986, to falsely accuse LaRouche and associ- ludicrous charges in the Pazery case.

52 International EIR June 21, 1996 'NorthernVeni ce' scenario set back in St. Petersburg by Roman Bessonov

At around 2:00 a.m. on June 3, as returns were counted in ests, and even trade in illegal isotopes. When Sobchak tried the St. Petersburg mayoral election, the citizens of Russia's to uncover some personal financial interests of Yakovlev, second largest city witnessed a tense competition between his crew broadcast a photo of a dacha belonging to another the two candidates-incumbent Anatoli Sobchak, and the official with a similar name, and a car which was hired by ultimate winner, former Deputy Mayor Vladimir A. Yakov­ a different deputy mayor. lev, head of the Committee for Municipal Services. This To Sobchak's motto "Mayor-to Governor!" was count­ rivalry was not a clash between two "pigs in a poke": The erposed the modest, mundane Yakovlev slogan: "We have difference between these two persons was visible, and hard work ahead." The second phrase gained more sympathy very striking. from the electorate, though it was an open challenge to the A champion in demagogy, who made his career by pro­ consumerist psychology, planted by the ideologue of the moting Mikhail Gorbachov to the newly invented post of "Northern Venice." U.S.S.R. President, and toppling Nikolai Ryzhkov during the A full three years after the breakdown of privatization elections designed for Gorbachov's victory; a parliamentary boss Anatoli Chubais's voucher funds, which buried many investigator of the 1990 rebellion in Thilisi, Georgia; a mem­ citizens' savings, Sobchak suddenly (one month before the ber of Andrei Sakharov's "Interregional Group"; a founder elections) was overcome by concern about the victims, and of the Movement of Democratic Reforms; a destroyer of promised quick return of their losses by the state. A cartoon this movement with ambitions of creating a pro-Yeltsin party in ehas Pik mocked this new fraud, depicting an old man of his own; a loser in the 1993 parliamentary elections who asking a fat official: "Is the money expected in the foresee­ m!Ulagedto retain power, despite rage fromthe Kremlin after able future?" In the background, a long road stretched to the unexpected victory of Vladimir Zhirinovsky; a political the horizon. Some of the unlucky bubble investors were broker who tried to play a special role in the Russian­ unable to hear Sobchak's promises; for example, the woman Chechen negotiations; a person who twice got support from who burned herself to death at the doors of the bankrupt Gorbachov and twice betrayed him; a background supporter "Russian Real Estate" company. of the project to make Prime Minister Viktor Chernomyrdin Sobchak also offered free train tickets to all owners of President. .. . This is not everything about Sobchak as a private gardens. (I tried to imagine the face of the railway public politician. On the level of the city, he was always a administration, which has no money to repair its coaches, two-faced Janus, one broadly smiling face turned toward from which the seats have been ripped out-no doubt by the West (but mostly to such damp places as London, Rotter­ garden owners, using "privatized" planks to heat their dam, and Hamburg); the other, stem and contemptuous­ houses.) The third "social base" selected by Sobchak was toward the citizens of S1. Peterburg, including those officials rock music lovers. Free concerts roared in the Central Con­ who opposed his idea of transforming the huge industrial cert Hall every night, drawing drunken teenagers, half of center into a "Northern Venice" of foreign tourism and ca­ them below the voting age. After a rock concert in the Palace sinos. Square, the area was covered with rubbish, and 14 alcohol­ Vladimir Yakovlev did not join any party (except the and drug-intoxicated rock fans ended their holiday at the Communist Party of the Soviet Union, in which he did police station. But Sobchak was still nothing for these youths not make and wasn't going to make any career). He was but a nasty old professor, and they rather mocked him, responsible for municipal services (housing, infrastructure, eagerly taking an opportunity for free fun. The outcome of sanitation, etc.) already in the Soviet period, and until 1996; the elections was more likely defined by the policemen, a person of no great eloquence, with no specific private attacked by this hashish-intoxicated crowd, and the parents interests-although all the other deputy mayors were deeply of the young rock fans, who have no possibility to bring engaged in one or another economic rivalry, lobbyist inter- them up properly or give them a good education.

EIR June 21, 1996 International 53 Sobchak's real social base was the consumerist psychol­ The pro-separatist activity of the Northern Venice net­ ogy of the new middle class in St. Petersburg, the greater work is far-flung. The House of Nature, the former Finnish part of which is employees of the foreign companies that Church, now houses the headquarters of the Unrepresented have flooded the town and changed its appearance during People's Organization. It is situated halfway from Sobchak's the past five years-the young girls from shops filled with flat to the casino where his daughter prefers to spend time. Mars chocolate bars and Coca-Cola, and incessantly chew­ The Friends of Tibet Society is nearer to Sobchak' s office: Its ing, lazy young guys who guard these shops at night. Sob­ windows look out on Smolny, the city governmentbuilding. chak tried to scare them about the alleged "communist think­ During the campaign, already targetted by the investiga­ ing" of his rival, hinting that they could lose their jobs, along tion of his real estate ventures, Sobchak attempted to hide with their recently purchased brick cottages on the outskirts behind the back of Gazprom, the giant Russian natural gas of the city. When this didn't work, especially afterthe Presi­ firm. The example of Chechnya, like Chiapas in Mexico, dent declined to endorse either candidate, Sobchak tried to exposes the fact that fuel monopolists don't care much for serve his consumerist propaganda under a thick sauce of the integrity of countries. They prefer as weak a central regionalism. He claimed that Yakovlev was "the hand of power as possible. For a corrupt regional baron, such an Moscow," that Moscow banks "under direction of [Moscow alliance is most profitable, and in a bad situation it seems Mayor Yuri] Luzhkov and [Presidential Guard chief] Kor­ the best way to save one's career. zhakov" would loot the city. He insisted that St. Petersburg Three other political supporters of Sobchak were Yegor should be more independent from the federal authorities, Gaidar, the shock therapy "surgeon"; Anatoly Chubais, with especially respecting foreign investments. his reported special affection for Britain's Prince Charles; Sobchak's approach to foreign investments was really and Galina Starovoitova, the instrument of several British­ rather original. For example, to prepare for the 2004 Olympic manipulated destabilizations in the Caucasus. games, he found a Korean businessman named Lim, who In the TV debate on May 31, Sobchak looked embar­ was not only in the construction industry, but also sponsored rassed and exhausted. The talented demagogue could hardly a so-called "Christian cooperation," uniting 21 of the so­ connect his arguments and appeared unable to repeat his called "charismatic churches," based upon "distribution of own fabrications against his rival. Two hours before the humanitarian aid" and different methods of hypnosis. The debate, TV reported that the St. Petersburg Police Depart­ "cooperation," co-founded by the Bible Foundation (affili­ ment on Organized Crime had tracked down and arrested ated with the famous London Bible Society), has just opened AsIan U soyan, one of the four patriarchs of the Caucasus an "ecology department" under Lim's "personal" institution, criminal brotherhood, convicted many times for arms and the "Emmanuel Church." drug deals. The old man, with two persons of Syrian origin, was seized in a Volvo, whose license plate showed that it Sobchak's support networks belonged to the City Assembly. The driver appeared to be There is nothing strange in the fact that Khojakhmed an assistant of Viktor Novosyolov, deputy head of the City Y arikhanov, "minister of culture" of the Chechen rebels and Assembly, who has his own history of relations with orga­ linked with the most criminal sorts of separatist terrorists, nized crime-and, was very active in Sobchak's campaign. was invited to St. Petersburg. Autonomy from the Russian That last detail was not mentioned in the TV report, but Federation was an idee fixe of Sobchak. It came up when Sobchak appeared to have lost his gift of eloquence. he was planning to transform the city into a free economic zone, already in 1990; just three months ago, Sobchak said Annushka has spilled the sunfloweroil that if the Communist Party of the Russian Federation In Mikhail Bulgakov's The Master and Margarita, the (CPRF) won the Russian Presidency, St. Petersburg devil, disguised as a "foreign specialist," sadly says to Profes­ would secede. sor Berlioz, "You see, Annushka has already spilled the sun­ Implementing his idea of the Northern Venice, Sobchak floweroil ." The bewildered professor says good-bye, hurries revived the role St. Peterburg played in the early 20th cen­ to the nearest tram stop, slips on the rails, and gets decapitated tury, as the center of separatist projects for various parts of by a tram, because a girl named Annushka has just spilled a the Russian empire. Nowadays, these are developed at the bottle of sunfloweroil right there. New Age Center, the Psychoanalytical Institute, the Free Sobchak's TV ads stressed the word "head," in Russian Culture Center, and confederalist ideological centers at the golova, which was used before 1917 to mean "mayor." But Institute of Ethnography, and some departments of the Na­ Sobchak's head is not to decorate Smolny any more, and tional Library. Several big libraries were literally bought by "Annushka" was to blame again: companies controlled by the British Council, which has its Anna Y evglevskaya is presently in Moscow, in the Lefor­ headquarters right in the historic Smolny district, in a build­ tovo jail. The State Prosecutor's Office is investigating sev­ ing that used to house a music school and a college of arts. eral cases of bribery, involving over a dozen St. Petersburg

54 International EIR June 21, 1996 officials. Annushka is president of a small private construc­ Chernomyrdin at the congress of his Our Home party, tion company called Renaissance. Luzhkov advised him not to accept Chubais into it, "or Six years ago, soon after Sobchak came to power, one of otherwise he'll drag everything out of your home and sell his new "democratic" officials, Sergei Tarasevich (he was it for nothing, like an alcoholic." responsible for half of the historical city center), transferred Anatoli Chubais was the main supervisor and aide in a nice, three-story mansion, on a quiet street not far from the Sobchak's campaign. Having begun his career on the Lenin­ Neva River, to the newly founded Apracon Company. It was grad Executive Committee in 1990-91, Chubais owes the going to build a new kindergarten with a swimming pool, city not only for the despair of the deceived investors in medical services, and all. Apracon set up a daughter structure pyramid companies, but for immense losses of income from called Renaissance. Afterfour years, there was still no swim­ real estate privatization. Huge buildings of plants and super­ ming pool, and the kindergarten had been evicted. markets were sold for nothing. The greater part of these In June 1994, the whole house became the private prop­ deals went to the buyers "under the counter," avoiding pay­ erty of Mrs. Yevglevskaya. Newspapers in St. Petersburg ments into the state coffers. have reported on its disposition: One of the flats already was As a result, construction ground to a halt. Next came given (as a present) to a certain Marina Kutina, the mayor's the collapse of infrastructure. The number of public transport niece. A three-room, loo-square-meter flat was sold for 1.2 routes decreased twofold, the reconstruction of one of the million rubles (then approximately $400, or the cost of 1 biggest bridges over the Neva stopped for three years, and square meter of floorspacein Moscow) to Viktoria Zibarova, one subway line was closed indefinitely after a water break­ the common-law wife of Tarasevich. Oleg Kharchenko, the through. Specialists blamed a rising level of ground water, chief architect of the city, got to switch (without paying any caused by declining water use by industry. During the elec­ additional fee) his 70-square-meter flaton the outskirts, for a tions, one liberal paper quoted another specialist, who 168-square-meter flatin the city center. thoughtthe anti-flood dam on the Gulf of Finland was really At the same time, Sobchak's wife undertook manipula­ to blame; but that interpretation evidently had to do with tions to "double" the mayor's flat by connecting it with the the fact that the dam's director, communist Yury Sevenard, neighboring one. Had she succeeded, the family of three per­ was running against Sobchak in the first round. That dam, sons (mayor, wife, and daughter) would have gotten a huge begun in the early 1980s, is still unfinished-due not to apartment of over 300 square meters. Sobchak's elder daugh­ Sevenard's political orientation, but to the shock therapy ter, as well as his brother and his sister-in-law, got new pieces reforms that undermine and criminalize industry. St. Peters­ of "elite real estate" at the same time. burg's industrial giants, which previously employed over The market economy enthusiast received all this at tax­ half the population, are in decay. The situation is the same payers' expense. in most of Russia's industrial centers. Of course, the loss for the city budget from these deals But the situation in the world is not the same as two or cannot be compared with the losses for the nation from Chu­ three years ago, and the strategic significance of the city bais's privatization. But it gives a certain impression of the on the Baltic, known as Russia's "window to Europe," is politician who began his career as a professoroflaw, exposing getting more and more important, especially after the Central the prime minister's mismanagement with an expression of Asian states of Kazakhstan, Turkmenistan, and Uzbekistan indignation on his face. pulled in the other direction, contracting fuel agreements A Russian proverb says that apples don't fall far from the with Iran. Those in the Russian leadership, who want at tree. In summer 1995, Sobchak' s daughterOksana was picked least to try to save industrial capacities, can't rely upon up in a police drug raid on the casino in Konyushennaya such a regional leader as Sobchak. The person of the St. Square. The 16-year-old girl was let go, but the story got into Petersburg mayor began to be seen as a problem of national the papers. economic security. Rumors and publications about Sobchak's life of luxury At first, the preferred St. Petersburg mayoral candidate fe ll, like drops of sunflower oil,on the tracks of the future elec­ of the Moscow opponents of Chernomyrdin and Chubais tions. evidently was Yuri Boldyrev, deputy head of the Counting Chamber and a former member of the U.S.S.R. Supreme The Moscow alternative Soviet, representing St. Petersburg when it was called Lenin­ After the elections, Moscow Mayor Yuri Luzhkov, who grad. With an image as a fair democrat who really exposed did not conceal his support for Yakovlev, hammered the corruption in the Executive branch, Boldyrev was rather last nail into the coffin of Sobchak's career, interpreting popular in the city. Yakovlev's victory as "the end of the era of demagogues." But Boldyrev had not a day of experience as a head of The Muscovites remember Luzhkov' s comments on the poor anything (Sobchak, at least, had headed a university depart­ budget results of the privatization in Russia: Addressing ment). There was some concern, that he would be easily

EIR June 21, 1996 International 55 manipulated by financial and political string-pullers. St. Pe­ largest cinema producer; teachers at the Conservatory, which tersburg already had the experience of left-liberal populist is crumbling into ruin; and so forth. These people realized Aleksandr Shchelkanov, head of the Leningrad Executive that the problems of the city are a part of the nation's, but Committee in 1990-91, through whose fingers a lot of city they still could not believe that the city budget has no money, funds slipped into the pockets of the "first generation of when the press chatters about evening balls and parties of privatizers," who thrived under Chubais (at that time, head some organization of "old Russian noblemen," or orgies in of the Leningrad Executive Committee). casinos and private banks celebrating their five-yearanniver­ The decision to promote Yakovlev was made in Moscow sary, or foreign investments for the Goodwill Games which only in early April, according to various sources. Sobchak's vanished in an unknown direction, or revenues from luxury people pointed to Luzhkov and Deputy Prime Minister Oleg hotels which appear not to be collected by the city. Add to Soskovets as Yakovlev's main supporters in the center. that, businessmen not included on the list of the privileged; Yakovlev was fair enough not to conceal this fact. "Okay," presidents of construction companies choked by taxes; and he said, "I am a hand of Moscow. But whose hand is Sob­ even realtors, who don't understand how the municipal hous­ chak, in this case?" ing agency can be, at the same time, a privileged commer­ In response to Sobchak's attacks on him for allegedly cial company. "communist views," Yakovlev said, "We should not divide Sobchak received his lowest vote level in the military the city into whites and reds." In the second round, Yakovlev satellite town of Kronstadt, a fortress in the times of Peter was supported by centrists associated with Presidential can­ I and a strategic base of the Baltic Fleet until recently. There, didate Grigori Yavlinsky, but he rejected official support sailors from the former military units in Estonia and Latvia from the CPRF organization. have to live in so-called "floating bases," actually in ships, since not a single house was built on the island for the last A window of hope five years. The other citizens of Kronstadt are desperately The St. Petersburg elections were not quite a victory of waiting for their town, previously the pride of Russia, to be good over evil. The new mayor depends on his Moscow transformed into an internationalcasino, with a new highway and local support groups, who depend on the world financial across the Gulf, bringing Swedish tourists to mock the rem­ elite; he is dependent on the logic of the Presidential election, nants of Russian glory. The statue of Peter I at the Kronstadt which can make him say things opposite to what he thinks quay, seeming to be darker than ever before, looks with rage or believes; he is dependent on the government, which is and contempt at its cartoon double, with a tiny head and still headed by stooges of London and the International big belly, installed at the Fortress of Peter and Paul by the Monetary Fund; he is dependent on his staff, which will not peculiar postmodernistMikhail Shemyakin, better known as be easy to replace with reliable and professional people. Michel Chemiakine. But no matter how talented or weak Yakovlev proves, his During the war, besieged Leningrad was connected with victory has given hope to hundreds of thousands people the mainland only by one route, across the ice of Lake Ladoga. who, unexpectedly, realized they were still able to change It was called the Road of Life. something. The fate of St. Petersburg depends on what happens with It was a victory not for communist or anti-Westernviews, Russia, and the whole nation more and more depends on the but for human dignity. Harping on the fact that Yakovlev situation in the world economy. So, we have no illusions about was not born in Leningrad (he was born elsewhere, only Vladimir Yakovlev as some kind of magician. But there is an because of the wartime evacuation), the Tashkent-born Sob­ impression that now the city, which he does not divide into chak did not realize that the city where he became a near­ "reds and whites," will work hard together with him, and we'll dictator, imposing stricter press censorship and stricter secu­ survive together with the whole country. rity procedures at Smolny than in the times of the Communist Our predecessors walked through fire and icy Ladoga Party of the Soviet Union, had its own collective feeling of water. We had to make our way through the temptation of the dignity. It rested on the city's responsibility for Russian cosy liberal mirage, through the glistening halls of supermar­ economy, culture, and science. This dignity had not vanished kets, through the disgrace of humiliation-to . our identity. since the period of postwar reconstruction. Those who care for this city as a part of Russia, its history, its The invisible force that turned the election comprised glory, its optimistic tragedy, those who have not forgotten the majority of those citizens, whose professional honor was what this city meant for the country, those who prefer work humiliated by the Gaidar-Chubais reform: Scientists from to casino leisure. those who haven't lost their human and the famous Lengiprogor institute (it designed towns for Sibe­ national dignity. have won. ria and the Far North), who haven't been paid for months; I see my dear native city again through the rubbish of skilled workers from the now-struggling Baltic Shipyard, British and Swedish signboards, I feel its heart beating. It is where the pride of the Soviet Navy was built; actors of the my city. It is alive. The Hero-City has defeated the Northern now almost lifeless Lenfilm studio, formerly the second Venice.

56 International EIR June 21, 1996 Reportfrom Bonn by RainerApel

They are still not doing their job mistakes or worse" in the spectacular The big labor protests against budget cuts will be in vain, ifthe cases of financial fraud, illegal trans­ fers, and ensuing corporate collapses labor leaders continue to back an "energy tax. " over the last two years-Schneider, Balsam, Kloeckner, Daimler-Benz, Vulkan-have racked up economic damages of DM 10 billion. Schulte No doubt, the ongoing nationwide German industrial products certainly and other labor leaders have called mobilization of the German labor rank among the most expensive in the for a special tax on speculation, and movement against the government's world, the clear advantage that Ger­ for legislation making speculation planned deep cuts in the social and man products have over their compet­ with corporate funds a crime, holding labor affairs budgets is building mo­ itors, is their extremely high quality. managers personally responsible. mentum, and it is impressive. With The reason, the survey said, is that the Calls for measures against specu­ an average turnout of 50-80,000 average, steadily employed German lation, and especially against deriva­ workers of the various unions en­ worker whose job is well-paid, lives tives, unfortunately, are not at the cen­ gaged in daily warning strikes over up to this job security with high relia­ ter of the DGB mobilization. the first two weeks of June, and the bility. What is, rather, is its demand for national rally in Bonn of up to The Bonn government, influenced an "energy tax," to increase tax reve­ 250,000 union members, on June 15, by the deregulation and budget-cut­ nue and ease the budget pressure. De­ the labor movement has shown that ting ideologues, risks destroying this signed as a compromise between the it can mobilize. .. very advantage, and that will prove strong ecologist currents inside the la­ For a European country that has more damaging, in the long term, than bor unions and the government, at the had a strong postwar reputation for any wage cuts. German labor leaders expense of industry, the DGB ap­ labor peace, the June 15 event, involv­ have also tried to address this, in order proach is a dangerous compromise ing all 16 member unions of the DGB to revive the social consensus be­ with the monetarists-who, in any national labor fe deration, is some­ tween labor, management, and the case, are looking for ways of increas­ thing that has only occurred every 15- government. But the government, ing the tax burden on industry, which 20 years. With 9.4 million members, prompted by the International Mone­ is alleged to "consume too many re­ the DGB is a political factor that can­ tary Fund, decided not to listen, and sources" (which the monetarists per­ not be ignored. The "quiet" on the suddenly decreed cuts in the range haps think could be better spent on labor front, is key in the productivity of DM 25 billion for FY 1997. This debt service). and reliability of German industry, broke off the Bonn roundtable talks The DGB energy tax campaign and it ensures that the quality of in­ on budget problems between labor, puts labor at odds with energy-inten­ dustrial products does not suffer the management, and the government in sive industry. Knowing that, labor kind of sabotage that workers commit late April; since then, labor has esca­ leaders are calling for an "energy tax" in countries that have deep disregard lated its protests. on the condition that the energy-inten­ for the workforce. Substandard pro­ But the ongoing labor mobiliza­ sive industry be exempted. This, how­ duction is still very rare in Germa­ tion suffers from a dangerous flaw: ever, will necessarily tum the energy ny's industry. The unions have no program for a tax into a tax on private consumption, Certainty of receiving fair pay, serious alternative to monetarism, but which will hit working and retired peo­ contributes a lot to the pride German they do have some aspects of a poten­ ple, who already account for most of workers put in the "Made in Ger­ tial alternative. Criticism of the fi­ the private consumption that is taxed. many" label. However, German ideo­ nancial speculation and hostile take­ The speculators, who spend their logues who have borrowed massively overs at the expense of industrial jobs, money mostly abroad, meanwhile go from the London-based cult of liberal­ has become a prominent feature in untaxed. ism and deregulation, tend to deny labor's political agitation. If the DGB leaves the speculators this fact. On June 11, Dieter Schulte, the untouched, it will leave its own union Ironically, this was confirmedin a national chairman of the DGB, re­ members unprotected, and this is one survey by the London-based Business minded the government and the other of the big, indirect messages of the la­ Council, which concluded that, while critics of labor, that "management bor mobilization for the June 15 event.

EIR June 21, 1996 International 57 Reportfrom Rio by Silvia Palacios

MST opts for irregular warfare owned by the federal government, The Landless Movement is now modelling itselfon Shining among them, some owned by the Army. Path 's bloody war against We sterncivilization. Immediately, the MST's leader­ ship launched an attack on the target it most seeks to destroy: the Armed Leaving behind the pro-terrorist Demonstrating the global nature Forces. With its advanced technologi­ modus operandi it has used to date, of these allegedly "national" terrorist cal projects, the Armed Forces have the Landless Movement (MST), allied movements, Brazilian advocates of sustained the sovereign nation-state; to the Workers Party (PT)and the Sao guerrilla war invoked the so-called thus, they are hated by the proponents Paulo Forum, has now entered a new Unabomber, coinciding with the of demilitarization among the interna­ phase of full-scale irregular warfare. MST's actions at Tucurui. Prior to tional oligarchy. National MST leader Directing its actions against strategic the planned seizure, Delman Sergio Gilmar Mauro has stated that the ter­ sectors of the country's infrastructure, Ferrel, the energy secretary of the Ur­ rorist group's next target is the lands the MST is modelling itself on the ban Workers Federation, to which the belonging to the Air Force and the murderous Shining Path in Peru, electrical workers are affiliated, circu­ Navy. "They have a lot of unproduc­ whose Pol Pot-like ideology drove it lated a signed manifesto entitled tive land," he said. "The Navy, for to destroy similar infrastructure in "Unabomber." It stated: "At the mo­ example, could give up a piece of the Peru, because it was considered a ment, our forces are small . . . open large, unproductive lands it owns in hated sign of Western, capitalist civi­ confrontation doesn't interest us. We Ipero," referring to the area surround­ lization. have to wage a guerrilla war. We have ing the Aramar Technological Center On May 25, Army troops occu­ to wage psychological terrorism-de­ where the Navy conducts nuclear re­ pied the installations of the huge Tu­ stabilization. Things will happen. We search on projects such as the nu­ curui hydroelectric plant, to prevent don't know what, where, or how. clear submarine. its planned seizure by the MST, small They are part of the destabilization. While the MST wages irregular landowners, and the electrical work­ ... We are chaos." warfare, its ally, the continental ers' union. Tucurui is Brazil's second For now, the MST continues to narco-terrorist coalition, the Sao largest hydroelectric plant, with an in­ concentrate its efforts on the rich and Paulo Forum, has also escalated its stalled capacity of 6,000 megawatts. strategically important state of Para, offensive against Brazil. It is located in the Amazonian state where the British oligarchy has tried Journalisticsources report that the of Para where, less than two months to impose its theory of "limited sover­ Sixth Conference of the Sao Paulo ago, the MST provoked a bloody con­ eignty." In a ceremony in Rio de Ja­ Forum will take place in Brazil, re­ frontation with military police, and neiro, in which he received the title portedly in Porto Alegre, the capital gained a significant political victory of "citizen of the state," MST leader of the southern state of Rio Grande from the ensuing "massacre" of 19 Jose Rainha (an admirer of Mao Ze­ do SuI. This would have the obvious peasants. dong) boasted, "In Para, we will oc­ purpose of strengthening Raul Pont, According to government intelli­ cupy lands belonging to Varig [the currently the PT's candidate for gence reports covered in local media, Brazil state airline], and the millions mayor of Porto Alegre. Pont is a mili­ the terrorist action was planned with of latifundioswhich produce nothing. tant of the party's Trotskyist faction. military precision. MST agitators This is how we shall obtain our The Forum's FifthConference, which planned to invade three or four farms rights." took place in Uruguay in May 1995, near Tucurui, the small landowners Despite these threats, President determined that Porto Alegre pos­ were to invade the village inhabited Fernando Henrique Cardoso contin­ sessed the necessary characteristics to by officials and workers at the plant, ues to capitulate to the MST's de­ become an international example of and the electrical workers were to mands, thus feeding the terrorist mon­ a neo-communist government. More­ seize the plant's installations. Had the ster threatening strategic regions of over, the state is a bastion of the sabotage been successful, part of the the country. On May 24, Cardoso an­ MST's activities. According to Frey northern and northeastern regions of nounced that the government had de­ Betto, editor of the Sao Paulo Forum's the country would have been left cided to transfer to Para, control of magazine, it is the "j ewel of the conti­ without electricity. 21 million hectares of land previously nent's popular movements."

58 International EIR June 21, 1996 AndeanReport by Gretchen Small

BBC's 'Revive Shining Path' project be interviewer, John Simpson (BBC's Arrests of Shining Path and Japanese Red Army guerrillas in foreign affairs editor), prepared a "devastating televised report on Peru," Peru prove EIR right once again on narco-terrorism. broadcast by BBC in December 1992, which attacked, not Guzman and Shin­ ing Path, but those who were in the Shining Path, the terrorists who rav­ natives' "indigenous" celebrations. process of crushing those terrorists, aged Peru for 12 years, are coming In 1989, when Guzman's life and Peru's Armed Forces. Lord A vebury, back into vogue. Leading the way, was whereabouts were still said to be un­ head of the Human Rights Commis­ the mid-May announcement by Holly­ known, Shakespeare published a sion of the British Parliament, wood's John Malkovich, that he plans novel, The Vision of Elena Silves, in promptly called hearings into the Pe­ to produce a multimillion-dollar which the "fictitious" leader of Shin­ ruvian military's "human rights viola­ movie on Shining Path and the 1992 ing Path is envisioned to be living in tions" and "witch-hunts" against Shin­ capture of its chief, Abimael Guzman. Lima, suffering from psoriasis, smok­ ing Path networks abroad. His star The script for the filmis to be based on ing imported cigarettes, and listening witness at the hearings: Simpson. a novel, The Dancer Up stairs, written to Frank Sinatra records. Now, consider the Japanese Red by a British writer and sometime Brit­ How did Shakespeare know such Army story. JRA leader Yoshimura ish Broadcasting Corp. (BBC) corre­ accurate details? "I guessed it" from was deported to Japan on June 5, to spondent, Nicholas Shakespeare. reading about another "egoist," Lenin, face charges, including those stem­ National law enforcement agen­ he told Caretas. ming from the 1974 attack. She was cies around the globe had better pay Hardly a credible story. Shakes­ picked up, reportedly on a tip provided attention to this one. A feature story peare bragged to Caretas that he was a by Interpol, based on interrogations of on Shakespeare, appearing in Peru's friend of another BBC correspondent, another JRA member, Yokiko Ekita, Caretas magazine of May 30, con­ surname Simpson, who, through arrested in Bucharest in March 1995, firms, with new, devastating detail, months of "patient work," had ar­ who had a false Peruvian passport. EIR 's contention that British sponsor­ ranged an interview with Guzman in Yoshimura had been meeting with ship of international terrorism most 1992. Shakespeare worked with Simp­ the leadership of the still-active "Red definitely still extends to the Shining son on the interview, providing a list Path" faction, in the Upper Huallaga Path. of proposed questions for Guzman. Valley, providing money and advice Immediately following Caretas 's There is no question that the BBC on the reconstruction of the Shining story, the news broke, that on May 25, interview with the fu gitive killer was Path apparatus. Japanese police are Peruvian police had arrested a top Jap­ coordinated with the British govern­ said to have letters sent each year to anese Red Army terrorist, Kazuo Y 0- ment. Simpson dined at the British Shining Path, for example, from JRA shimura, wanted for her role in the Embassy on Sept. 12, 1992, the night member Fusako Shigenobu, who op­ JRA's attack on the French Embassy before the interview was scheduled. It erates out of Lebanon. Her husband, in The Hague in 1974. Yoshimura, never occurred, only because Peruvian Junzo Okudaira, visited Yoshimura based in Lima, was working on re­ military and police captured Guzman frequently in Lima. building Shining Path. on that very day. Some 14 JRA members are As EIR said in its three-part series BBC was more than disappointed. thought to operate in South America, on London's "New Terror Interna­ On Sept. 18, 1992, after Guzman's in Brazil, Paraguay, Ecuador, and tional," published Oct. 13, Nov. 10, capture, BBC ran a special on Peru, Peru. The JRA is believed to operate and Nov. 17, 1995, there is nothing interviewing Peru's top liberation the­ out of the tri-national area near the "national" about any of the terrorist ology ideologue, Gustavo Gutierrez; Iguazu Falls (Paraguay, Brazil, and groups today afflicting the world. Peter Archard of Amnesty Interna­ Argentina), and, according to Caretas First, the BBC story: tional; and Britain's Shining Path "ex­ of June 6, it has been said that the JRA Shakespeare is the son of a former pert," Simon Strong. Their message: may have been involved in the bloody British ambassador to Peru. He lived Peru's problems didn't begin with 1994 bombing of the Argentine-Israeli in Lima when his father was ambassa­ Shining Path, and Guzman's capture Mutual Association (AMIA) head­ dor (1984-89), preparing various films would not end them. quarters in Buenos Aires, widely for BBC on such topics as the Peruvian Deprived of his scoop, the would- blamed on the Hezbollah.

EIR June 21, 1996 International 59 International Intelligence

kin, Tolstoy, and the other classics. The min­ In southwestern Tibet, starting May 6, Balaguer and Bosch unite ister of education rejoined, that they are there has been violence related to Chinese fo r Dominican Republic taught better now, than ever. He affirmedthe moves to remove photographs of the Dalai same on May 21, at parliamentary hearings Lama, an open British agent, from public on 'Education and National Security.' places. Combining 176 years of wisdom, former "Those assembled particularly criticized President Juan Bosch, 87, and Dominican the history textbooks, published under the President Joaquin Balaguer, set aside their Soros Fund's 'Renewal of Humanities Edu­ decades-old rivalry to join in support of the u. S. may reopen its cation in Russia' program, which the Minis­ Presidential candidacy of Leonel Fernandez try of Education supports. One of the partici­ embassy in Khartoum in the June 30 runoff elections against the pants called the Soros history texts 'anti­ Inter-American Dialogue's candidate, Jose scientific and anti-patriotic.' The German Western diplomatic sources in the Sudanese Francisco Peiia Gomez. The octogenarian scholar Anno Hellenbroich, from the Schil­ capital, Khartoum, told Alquds Alarabi of leaders signed a pact on June 1, stating that, ler Institute, also spoke very emphatically in June 7 that the United States is planning to despite their differences, they are united by this regard, saying that Soros's interference reopen its embassy there before the end of "love for the fatherland," which, "among in education was doing harm not only in Rus­ the month, after it had been moved to Nai­ other challenges, faces problems coming sia, but also in several other European coun­ robi in the last three months allegedly out of from abroad, the great majority of which tries." fear for the lives of American staff. stem from the process of economic openings These sources said that the recent visit within a framework of globalization ....It by Russian Deputy Foreign Minister Viktor is in this context, that it becomes necessary Bosovalyuk to Khartoum had an impact on to renew our national hopes on the basis of Briton stirs up the American decision. "The U.S. is con­ reaffirming the principles that sustain the cerned about the close relations between Republic." Chinese breakaways Russia and Sudan, and is worried about los­ A poll released June 3 showed Fernan­ ing its strategic influence in that country dez ahead of Pefia Gomez by 55% to 45%. Following the early May trip to Beijing of which has a major impact on the East African Not surprisingly, in a speech televised na­ British European Commission Vice Presi­ region and other Arab countries in addition Feature tionwide that evening, Peiia Gomez said the dent Sir Leon Brittan (see in last to its location on the Red Sea," the sources EIR), accord was a racist attempt to deny him the week's three of China's giant border said. More important are the growing eco­ Presidency of the Dominican Republic. provinces now face an upsurge of religious nomic facilities which Sudan has given to fundamentalism aiming to "split the Chinese Russia (and Iranian) oil companies in the motherland," as China's official press re­ field of mining and oil production. "All these Schiller Institute blast ported June 4-6. Tibet, Xinjiang, and Inner issues have pushed the United States to work Mongolia provinces all lie outside the line to preserve what is left of its strategic inter­ at Soros in Pravda drawn in 1994 by London's InternationalIn­ ests in Sudan," confirmed the sources. stitute for Strategic Studies (IISS), on its map In coverage of a dispute between Commu­ illustrating how China is to be broken up. nist Party of the Russian Federation candi­ Xinjiang's capital Urumqi is a major New secessionist wing date Gennadi Zyuganov and Russian Feder­ nexus on the Eurasian land-bridge railroad ation Minister of Education Ye.V. from China into Central Asia. fo rmed in Sicily Tkachenko, over who better defends the The northern provinceof lnner Mongo­ Russian classics, Pravda of June 6 covered lia has now joined the list of areas facing Whereas public attention in recent months the Schiller Institute's intervention at Rus­ terrorist attacks, Liu Mingzu, Communist in Italy was focused on the secessionist rav­ sian parliamentary hearings on education Party secretary of the province, told the In­ ings in the Northern League's Umberto and national security. ner Mongolia Daily of June 3 after the arrest Bossi, a most serious development was be­ Pravda 's Irina Strelkova wrote: "For of 12 "Mongolian nationalists" for violence. ing organized in Sicily, historically a hotbed several days in early May, all TV channels In northwestern Xinjiang province, ter­ of secessionist threats. A new "independent­ were playing the speech of Russian Federa­ rorists advocating "independence" on May ist" political formation, called "We Sicil­ tion Minister of Education Ye.V. Tka­ 10 seriously wounded a pro-Beijing mullah. ians" (Noi Siciliani) got 100,000 votes in the chenko, who 'exposed' Presidential candi­ "Splittists," a Chinese official in Urumqi March political elections. It was not enough date G.A. Zyuganov's ignorance about said, have killed or injured seven pro­ to get a direct mandate, but a substantial re­ contemporary schools. Meeting with voters Beijing officials since the Feb. 27 assassina­ sult, if confirmed at the next regional elec­ in St. Petersburg, Zyuganov had said that tion of Muslim leader Akenmu Sidike, his tions, scheduled for June 16. Founder of the schoolchildren were not being given Push- adviser, and two policemen. slate is Teresa Canepa, daughter of the

60 International EIR June 21, 1996 7 Briefly

RENATO BRUSON, the cele­ brated baritone, spoke in support of the Schiller Institute's initiative to lower concert pitch to A=432 during a conference at the PontificalInstitute for Sacred Music in Rome, on June Count of Carcaci, leader of the separatist Si­ ton a full pageto mount a last-minute lobby­ 9. The event was held to release the cilian army (EVIS) which was defeated mili­ ing blitz. Penington pleaded that, if decrimi­ Italian edition of the A Manual on the tarily by the Italian State in 1945. It is known nalization were not to take place, then the Rudiments of Tuning and Registra­ that both the Mafia and the Sicilian latifund­ cabinet should at least adopt a three-year tion, entitled Canto e diapason. ists as well as British intelligence sup­ "moratorium" on the enforcement of all ported EVIS. marijuana laws. During this period, he said, THE OPIUM WAR is the subject Recently, Canepa's movement has been all the recommendations of his council of a Chinese film which will open in endorsed by the leftist Jesuit Ennio Pinta­ should be put into effect, i.e., that people Hongkong in July 1997, as the British cuda, who has so far been spiritual controller should be allowed to grow five marijuana colony reverts to Chinese rule 150 of the "anti-mafia" movement La Rete. Pin­ plants each "for personal consumption"­ years after the British takeover. tacuda has brought into "We Sicilians" a enough, given the extraordinary THC con­ bunch of former members of both La Rete tent of present strains of marijuana, to keep AFGHANISTAN'S conditions are and the radical wing of the PDS (former Ital­ an elephant stoned for a year. so terrible, that some war widows are ian Communist Party). Opposition to the proposal remained la­ selling their children in the hopes that Thus, Pintacuda is treading in the foot­ tent until the Citizens Electoral Council, the their buyers will feed them, Ahmed steps of Taparelli D'Azeglio S.J., envoy of LaRouche movement in Australia, began an Rashid reported from Kabul, in an ar­ the Savoy royal family to Sicily, who pro­ intensive call-up to many of Victoria's 1,700 ticle printed by the London Daily duced the leadership of the famous 1848 "Je­ churches, and the circulation of over 90,000 Telegraph June 11. "Tens of thou­ suit revolution," a British-steered operation special anti-drug supplements, "They Want sands of Afghans could die of starva­ to destroy the Kingdom of Naples. Chief Ne­ to Drug Your Children !" This triggered the tion next winter," a senior diplomat gotiator for the Sicilian revolutionists was protests which sank the proposal. in Kabul stated. Lord Minto. Taparelli D' Azeglio was among the first to draft a legal paper laying SOUTH AFRICAN President Nel­ the juridical basis for a one world govern­ son Mandela will address both British ment, under the name "ethnarchy." British block Panamanian houses of Parliament during his state amnestypro ject visit on July 11, which is being played by wire services as a "rare honor." Drug legalization dealt A campaign led by British intelligence's Reuters noted on June 6 that Mandela Amnesty International and London's Econ­ will be only the second foreign states­ setback in Australia omist forced Panama's Legislative Assem­ man since Wodd War II to be ac­ bly on June 3 to indefinitely postpone a vote corded this honor; the first was At its weekly cabinet meeting on June 11, on a bill to pardon nearly 1,000 military and French leader, Gen. Charles de the governmentof Victorian Prime Minister political figures affiliated with the govern­ Gaulle. Jeff Kennett bowed to overwhelming oppo­ ment of Gen. Manuel A. Noriega, over­ sition, and put off the decriminalization of thrown by George Bush's 1989 invasion. ARGENTINE news agency Telam marijuana. Though Kennett has made clear, The government backed down after the automatically deletes from the sys­ in appointing a committee to "study" the Economist ran an article threatening to pub­ tem any news item which contains the problem for another three years, that he in­ licize that President Ernesto Perez Balla­ name Lyndon LaRouche, a shocked tends to try again, the decision was a major dares was elected in a "campaign tainted by Telam journalist reported, when he victory for the LaRouche movement, which drug money like that of the ruling party in visited the offices of EIR in Buenos spearheaded the opposition to the Mont Pel­ Colombia." The British intervention pro­ Aires on June 6. erin-George Soros pro-drug forces. voked riots in the streets, and fisticuffsin the Up until the last minute, it was unclear Assembly itself. The delay means continued HUNGRY people on May 30, in a what the cabinet's decision would be. Ken­ imprisonment for scores of military officials town in the Mexican state of Nuevo nett had been attempting to ram the measure jailed since the invasion, and judicial limbo Leon, attacked a train carrying 40 through, by appointing a rigged Drug Advi­ for hundreds of others. Among the latter are tons of com and beans. The train's sory Council (DAC) to hand down pro-de­ former President Manuel Solis Palma and engineer commented that, when he criminalization "findings," and by "knee­ former President Francisco Rodriguez, both was forced to stop the train-the capping" the opposition in the parliament, charged with "provoking" the U.S. invasion. tracks had been blockaded with ce­ all the while ostensibly remaining neutral. It was also learnedon June 4, that EIR corre­ ment blocks-"hundreds of families On the day before the vote, Conrad spondent Carlos Wesley was among those to appeared, just as during the Revolu­ Black's The Age newspaper gave DAC head be pardoned, on potential charges stemming tion [of 19 10] , to take the com." and Mont Pelerin flunky Dr. David Pening- from organizing support for Panama.

EIR June 21, 1996 International 61 �TIrnNational

'Impeach Ridge' campaign aims to knock out the Nazis

by Nancy Spannaus

President Clinton' s reelection is currently seen as a sure thing, Why Ridge?" by most pundits, including his enemies. But, this could dra­ When LaRouche used the term "Nazi" to describe House matically change in the face of the volatile economic and Speaker Newt Gingrich's (R-Ga.) policies in his March 2 strategic situation, or a victory in November could even be half-hournationwide TV advertisement, and other Democrats shortlived, if the Democratic Party does not win with a land­ hit Gingrich's Nazi tactics, many citizens objected that this slide in the Congress. might be too "extreme." In reality, these citizens were simply The crucial element to ensure the necessary victory is to afraid to call a spade, a spade. In the Governor Ridge case, mobilize· the Democratic Party to rej ect the Nazi policies of the reality is laid out in a way that forces people to confront budget-cutting which are currently being imposed, primarily the truth. by Republican governors, around the country. With this real­ Governor Ridge's cuts in medical assistance were well ity in view, Democratic Presidential candidate Lyndon debated in the Pennsylvania legislature. The governor was LaRouche has launched a national campaign for the impeach­ told what would happen to the more than 200,000 people ment of Pennsylvania' Gov. Tom Ridge, as the most exposed faced with cutoffs of kidney dialysis, life-sustaining medica­ exponent of Nazi economic policies. tions, and other vital medical treatment. He also knew that it The LaRouche Exploratory Committee is actively seek­ was possible for him to balance the budget by measures other ing sponsors for the impeachment resolution which it has than cutting these people off from aid, since a bill for taxing drafted. That resolution documents that Governor Ridge speculative income had been drawn up for consideration, dur­ knows, or should have known, that his May 16 action cutting ing the March-April debate. Yet, knowing that people would medical care for 220,000 indigent Pennsylvanians, would re­ needlessly die in large numbers-studies have shown that sult in the wrongful deaths of thousands of citizens. Therefore, more than 3,500 might be expected to die from lackof medical the governoris guilty of crimes against humanity, as defined care over the first six months after the cutoff-Governor by the Nuremberg trials which condemned Nazis to death by Ridge went ahead anyway. the same standard at the end of World War II. And, according He "knew or should have known" that his order would to Pennsylvania's Constitution, this violation provides the lead to the commitment of mass murder. basis for removing him fromof fice. There is no difference between such action by Ridge, and Democratic Party officials in Pennsylvania have yet to the actions taken by administrators of the genocidal Nazi med­ take a position on the resolution, although leading members, ical programs of the 1930s. A review of the Nuremberg Tribu­ including Black Legislative Caucus head Harold James, have nal records makes this very clear. been in the vanguard of excoriating Ridge's policies. But LaRouche's Pennsylvania spokesman, Phil Valenti, de­ the LaRouche campaign has decided to carry out a dramatic scribed it this way: "This method of killing, is exactly what escalation over the weeks between now and the Democratic the anti-Nazi Dr. Gerhard Schmidt described as the Nazi pol­ National Convention, one that will draw the clear political icy for murder, which was implemented at the EglfingSanitar­ lines required. ium in Germany during the war. Patients were put on near-

62 National EIR June 21, 1996 starvation diets, depending on how much work they could do. for the U.S. Senate, their attacks on North and the Gingrichites The motto at Eglfing was,'We give them no fat, then they go were applauded several times. Chief nominator Stuart Rosen­ on their own.' In Pennsylvania, Ridge gives them no medical blatt used his fiveminutes to lay out the Ridge campaign, and insurance safety-net, 'then they go on their own.' Dr. Schmidt urge Virginia Democrats to join it. Rosenblatt said: denounced this 'method of killing ...that in the classic sense "Fellow Democrats, the Republican governorof Pennsyl­ is no killing, no one-time action with a recognizable cause vania, Thomas Ridge, a disciple of that scoundrel Newt Gin­ or conclusion.' grich, has just ramrodded a bill through the Pennsylvania "What is the difference between the orientation of Ridge' s legislature to remove all emergency health care from 250,000 'get tough, budget-balancing' policy, and that of Dr. Arthur people in Pennsylvania who are in dire need of that care. This Guett, the Nazi Director of Public Health, who in 1935 de­ is going to murder 3,000 people or more, right now! clared, 'The ill-conceived "love of thy neighbor" has to disap­ "Are we Democrats going to stand by and let this happen? pear' from policy-makingcriteri a." "Of course not! Nancy Spannaus is already leading the LaRouche has stressed that Americans have to face the growing movement to impeach the Republican governor of Ridge case, because, to accept Ridge, is to accept the imposi­ Pennsylvania befo re November!! Th is is real! There are thou­ tion of Nazi policies wholesale in America. The current tolera­ sands of Ridges and Gingriches stalking the halls of power. tion of balanced-budget lunacy leads directly toward pro­ We must make an awful example of Ridge now, as we did grams like Ridge's. And the mentality which allows with Ollie North in 1994 [applause]! Americans to accept budget cuts that will kill people, is the "To quote Democratic Presidential candidate Lyndon same mentality which predominated in Germany prior to Hit­ LaRouche, 'By impeaching Ridge we set a patternwhich we ler coming into power. intend to use, in Pennsylvania and in other states, to remove "[Germans] accepted Hitler the same way that many all present members of Congress who are with the Contract Americans accepted Gingrich, and the Conservative Revolu­ with America, who are indictable under the Nuremberg Code tion," LaRouche said in an interview June 13. "In that time, as Nazi criminals for crimes against humanity.' Hitler was a product of what was called, in the 1920s and "Not the high road, or the low road, but the hard road. 1930s, the 'Conservative Revolution.' We had an echo of the To call things by their right names: Murder is murder. You Conservative Revolution in the United States, in the 1920s, cannot hide that; you can't say, 'That's my opinion. '-It was into the 1930s, in the so-called Calvin Coolidge era ....So, also Adolf Hitler's opinion. the Conservative Revolution, then, which gave us Hitler, is "In 1994, Nancy chaired the Committee to Get Ollie now on full sweep in a new form, around the Contract with North. That SOB, and sparked the campaign that defeated America and similar things inside the United States." North [applause]. So, the Ridge issue is not a Pennsylvania issue. It is a "Now we must win the battle to impeach the murderous matter of getting a movement going against these Nazi poli­ GovernorRidge and run the cohorts of Newt Gingrich out of cies, starting with the most egregious example, Gov. Tom the House and out of the Senate [applause]. Ridge. "It is this kind of aggressive campaign against this lurking evil that will energize the party and give us total victory Moving the Democratic Party come November. The LaRouche wing of the Democratic Party has been "As sitting U.S. senator, Nancy Spannaus will lead this battling the resurgence of Nazism--e.g., through economic fight! I hereby place her name in nomination. Thank you." austerity, euthanasia, sterilization, slave labor, and other The Virginia convention provided the most open situation means-for nearly three decades. Unfortunately, during for LaRouche Democrats mobilizing the party, as impeach­ much of that time, the base of the Democratic Party, and the ment resolutions were circulated, in addition to the speeches. Republican Party, refused to listen, and join in. The question But LaRouche Democrats also participated in the Texas Dem­ today is, will they do so? ocratic Convention, as well as smaller Democratic Party The vote totals from LaRouche's primary campaign, the meetings. support for his exoneration, and the degree of interest in In addition to the reluctance to face the Nazi issue, the LaRouche in the base of the Democratic Party would indicate main blockage LaRouche Democrats are finding, comes from growing receptivity. Although prominent national and state Democratic National Committee circles around DNC Chair­ officials are loathe to admit it, most activist Democrats are man Don Fowler. As previously reported, Fowler has moved fully aware of-and quite grateful for-the killer blow that to block LaRouche's lawful delegates to the National Con­ LaRouche Democrats delivered to Oliver North during his vention, and, over June 7-8, also blocked the credentialing of Virginia Senate race of 1994. three delegates to the Texas State Convention. If such actions Thus, when three LaRouche Democrats addressed over are permitted to continue, they will amount to the Democratic 2,000 delegates at the Virginia State Democratic Convention Party committing suicide, and leaving the nation defenseless over the June 7-8 weekend, in order to nominate this writer before Nazis like GovernorRidge.

EIR June 21, 1996 National 63 A resurgent AFL-CIO is key to defeating Conservative Revolution

by MariannaWertz

If the jacobin Conservative Revolutionaries who seized con­ movement, one that forcefully articulates and works to trol of the U.S. Congress are to be defeated in November, a achieve the idea that the common path to long-term value­ key factor will be the fight being waged by the AFL-CIO. for companies, for workers, for the nation itself-lies in Under the dynamic direction of the labor federation's new the investment in those things which benefit the common president, John 1. Sweeney, the once-moribund labor move­ good .... ment has transformed itself, virtually overnight,into a power­ "Most of all, the AFL-CIO is going to work for the Ameri­ ful voice for the rights of all working people and, most import­ can worker by rebuilding our labor movement. ...Yes, the antly, for the harmony of labor and industry-based on those truth is, our weakness encouraged employers to take the low rights-which built this nation. It is precisely that harmony road. Only by rebuilding our strength can we bring American which the Gingrichites have tossed to the wind in their em­ business back to the high road of high wages." brace of "free trade" and unbridled greed. On Oct. 26, 1995, Sweeney was elected president of the Reviving the 'social compact' AFL-CIO, in the first contested election for that office since From the beginning of his presidency, Sweeney has re­ the founding of the labor federation. His insurgent candidacy peatedly identified himself as a product of the post-World won by a margin of 7.3 million to 5.7 million votes, after a War II "social compact" built under President Franklin Del­ six-month, high-profile campaign to reverse the decline of ano Roosevelt. Like Lyndon LaRouche, EIR 's contributing the union movement which occurred under the presidency of editor and a candidate for the Democratic Presidential nomi­ Trilateral Commission member Lane Kirkland, whose hand­ nation, who identifiedthe World War II mobilization follow­ picked successor, Thomas R. Donahue, Sweeney defeated. ing the Great Depression as a model for what must be done From day one of his presidency, Sweeney, together with today in his June 2 nationwide television broadcast, Sweeney Vice President Linda Chavez-Thompson and Secretary-Trea­ points to that experience, hard as it was, as that on which the surer Rich Trurnka, has been working to forge a movement nation must draw today if it is to build itself out of this de­ that will fulfill Sweeney's campaign pledge to "rebuild the pression. labor movement and organize at a pace and scale that is un­ Sweeney, whose father was an Irish immigrant, described precedented." Indeed, hardly a day passes that one or all of that experience in a June 7 speech to the Cleveland City Club. the AFL-CIO officers isn't hitting the pavement somewhere "I, like many of you, am a product of the social compact that in the nation, leading protests, holding town meetings, or lifted America out of the Great Depression and lifted working confronting Gingrichites. Americans into the middle class .... Here's what working Though the AFL-CIO has endorsed Clinton's reelection, people knew: If we got up every morning and did our jobs, Sweeney has made it clear that he is rebuilding the labor then we could earn a better life for ourselves and a better movement, not as a tool of the Democratic Party, or of Clin­ chance for our children. Here's what business people knew: ton's campaign, but as a uniquely crucial factor in rebuilding If they paid their workers fairly and plowed some of their the American economy. Speaking June 3 at the New York profits back into their communities, they could count on loyal New School for Social Research (see Documentation), employees and loyal consumers. For companies back then, Sweeney identified thekey role of a strong union movement good citizenship was good business." in America: "When companies squeeze the last possible The basis of Sweeney's philosophy is the social doctrine ounce of productivity out of their workers, and then throw of the Catholic Church, first enunciated in Pope Leo XIII's them on the scrap-heap of unemployment or old age, with 1891 encyclical Rerum Novarum, which established the reduced pensions and health coverage ...who else are they church's backing for the rights of labor to a decent wage and hurting? This is a case where what goes around is going to to organize in trade unions. In a Feb. 27 speech to the Catholic come around ! Only a healthy American economy that raises Social Ministry Gathering in Washington, D.C., Sweeney workers and consumers up can sustain the long-run profit­ called on the Catholic Church to publicly support the labor ability companies need and the prosperity America needs .... movement's drive to "reclaim America" and "rebuild the la­ "And the solution is a larger, stronger, smarter labor bor movement," and, most crucially, to "restore the ability to

64 National EIR June 21, 1996 AFL-CIO President John Sweeney kicks off Union Summer at union headquarters in Washington, D. C., May 1. Sweeney is emphasizing the idea of harmony between labor and industryto build the nation: the cornerstone of "American System " economics, as against British fr ee-market liberalism.

strike." He concluded, "My idea of America is a country Then, on Feb. 21, the AFL-CIO' s annual winter Executive where honest labor raises the standard for all," a reference to Council meeting convened a press conference to announce Sweeney's favorite and most-used quote from President John one of the boldest initiatives in its history-and one which Kennedy, "a rising tide lifts all boats." has driven the Gingrichites to a rug-chewing rage. Sweeney This philosophy is also explicitly anti-British. In his New announced that the AFL-CIO will spend as much as $15 mil­ School speech, Sweeney identifiedthe Conservative Revolu­ lion in 1996-up from $2 million in 1995-to expand orga­ tionaries' philosophy as the Hobbesian "war of all against nizing efforts. "We cannot obtain public policies that protect all," wherein "security belongs to those who can buy it." His working families, unless we can build a substantially larger high-profiletrip with President Clinton to Ireland last Decem­ labor movement," Sweeney explained. ber also served to underscore his anti-British sentiments, as The plan also included spending up to $20 million to re­ does his staunch opposition to the doctrine of "free trade," as take the U.S. Congress from the Conservative Revolutionar­ that is expressed in such anti-labor pacts as the North Ameri­ ies: for advertising, to train up to 100 union activists in every can Free Trade Agreement and the General Agreement on congressional district, and to deploy 2,500 activists in key Tariffs and Trade. districts in the six weeks before the November election. In addition, the winter meeting resolved to launch a Unprecedented organizing "Union Summer" drive, modelled on the civil rights "Free­ As they pledged they would do from the start, Sweeney's dom Summer" in 1964, in which 1,000 young people will team is conducting an unprecedented organizing drive, both seek to organize new union shops, help out in voter registra­ in voter education and union organizing. Beginning in early tion, and demonstrate for fundamental rights for all working December 1995, the month after his election, Sweeney an­ people. Union Summer was officiallylaunched on June 1 and nounced a multimillion-dollar advertising and grass-roots is now up and running in 13 cities nationwide. lobbying campaign against the "Gingrich budget," to "hold Finally, the AFL-CIO Executive Council meeting set members of Congress individually and jointly accountable into motion a series of Town Hall meetings across the coun­ for the choices they are making-and to demand that they try, on the theme "America Needs a Raise," running from vote with working families, and against special interests." In the beginning of May to the end of June. A total of nearly addition to radio and television ads targetting members of 20 meetings to date has drawn close to 10,000 participants Congress who voted for the Gingrich budget, the labor federa­ in such key cities as Birmingham, Los Angeles, Columbus, tion sent out 1 million pieces of direct mail to union members Washington, D.C., Chicago, Houston, and Baltimore. With and retirees in the 55 targetted districts, and staged rallies in the limited focus of taking "testimonials" from workers those districts at the congressmen's headquarters. and unemployed people, whose lives have been devastated

EIR June 21, 1996 National 65 by the policies of corporate downsizing and welfare "re­ form," the meetings have proven to be a useful tool in Documentation organizing the population to begin to stand up for their legitimate rights. One of the best of these meetings was held June 6 as a The fo llowing are excerpts from a speech by John J. Sweeney, lunch-time demonstration on Wall Street. Sweeney ad­ president of the AFL-CIO, at the "America Needs a Raise " dressed thousands of cheering workers, enunciating his own rallyon Wall Street on June 6: "Contract with America" against what he called the "Wall Street wizards who are gambling away our future": If you ...From the West Coast to the East Coast, we've heard the don't raise the level of wages for working people, Sweeney same story, from workers who make $12,000 a year to work­ warned, "with our bodies and our brains, American workers ers who make $50,000 a year, to workers who make zero and their families will rise up and take back from you what dollars a year, from white collar, to blue collar, to new collar, you have taken from us! That's a promise, that's a contract, to no collar: "We're working harder and harder for less and that's a commitment" (see Documentation). less and America needs a raise!" Answer this, Wall Street: If corporate profitsare up 200% Drawing the wrath of the Gingrichites and executive compensation is up 400%, why are working Perhaps the thing that has most irritated their Gingrichite family incomes down 12%? Answer this, corporate America: opponents was the fact that Sweeney and the Executive Coun­ If productivity is up 24% and the Dow Jones is up 401 %, why cil announced plans for an unprecedented special delegated are working families running out of money, running out of convention of all affiliated unions to endorse and provide credit and running out of hope ? funds for carrying out this organizing drive. Meeting in Wash­ Answer this, American government: If family values are ington, D.C. on March 25, the delegates from 79 unions voted what this election year is all about, why don't we value work­ up this plan and approved a special assessment of 15¢ per ing families, why are moms and dads having to work three member per month to fund it. That convention also gave the jobs just to stay even, why do workers have no time left over Clinton-Gore ticket its endorsement for the Presidential for their kids and their parents? election. I'll answer them all: Because for the past 20 years Wall On Feb. 22, one day after the AFL-CIO' s Executive Coun­ Street and corporate America have been putting profitsbefore cil press conference, House Speaker Newt Gingrich (D-Ga.) people. Because for the past 20 years, the politicians we send melted down in public. This is "the most extraordinary open to Washington have been pandering to the rich and the big public commitment to buy the Congress in American his­ corporations and pounding on the middle class and the poor. tory," Gingrich told reporters in Atlanta. He vowed to stop Because for the past 20 years, 97% of the income increase in "Boss Sweeney." our country has gone to the top 20% of wage earners.... This was the signal for launching a McCarthy-style witch­ Here's our challenge to Wall Street: Stop jacking up the hunt against the leadership of organized labor, which has now stocks of companies who gain short-term profits from laying begun in full force. Under the direction of Rep. John Boehner off long-term employees, stop rewarding CEOs who run their (R-Ohio), chairman of the House Republican Conference and companies into the ground by running workers into the unem­ right-hand man to Gingrich, a number of leading labor offi­ ployment line. cials who are connected to Clinton, including Sweeney, are Here's our challenge to corporate America: Start export­ being targetted in Congressional hearings for "mafia ties" ing products instead of jobs, start consulting your employees and "corruption." when it comes to productivity, quality, and competitiveness, An April-May HRC report series, titled "Washington start paying them enough to afford the goods and services Union Boss Watch," viciously slanders Sweeney, Laborers they produce. union President Arthur Coia, and Teamsters President Ron Here's our challenge to American government: Stop rai­ Carey, employing outright red-baiting and similar McCarthy­ sing taxes on the middle class and the working poor, stop ite tactics. giving tax breaks to the wealthy and the big corporations, stop Butthe Sweeney-led labor movement appears tobe enjoy­ the Wall Street wizards who are gambling away our future, ing the fight. A recent release proclaimed victoriously, "We and stop stalling around on the minimum wage! have hit the nerve center of the Gingrich extremists." When Our message to business: Low wages are bad business a dozen freshmen Republican congressmen attempted to and they are bad for business-put some confidencein our stage a press conference outside AFL-CIO headquarters in ideas, put some dollars in our pockets, and we'll put you on early June, they were met by 500 chanting workers, who pre­ the map anywhere in the world! sented flowers and violin music to the Gingrichites, while Our message if you don't: With our bodies and our brains, turningtheir press conference into a rally for raising the mini­ American workers and their families will rise up and take mum wage. back from you what you have taken from us! ...

66 National EIR June 21, 1996 A new social compact mies, have led some to think that the way for businesses to Excerptsfrom a sp eech by Sweeney on June 3 in New York compete is to shred that compact, to use workers up and then City at the New Schoolfor Social Research: throw them away .... Some politicians and business leaders today advocate an ...In those years after WorldWar II, working people, busi­ atomized, divided society, one in which the rule is a war of ness people, and public officials shared a certain understand­ all against all. They offer a world where security belongs to ing-a "social compact." Working people knew that if they those who can buy it. Where hard work and loyalty are merely did their jobs, the businesses which employed them would weaknesses to be exploited by the quick and well-connected. prosper, and they could earn a better life for themselves and Where the only hope offered to the downsized is the chance a better chance for their children. And government officials to hate those even less well off. ... understood that a compact between business and labor, in As president of the AFL-CIO, I stand with many others which each side contributed to the well-being of the other, in offering a humane and profitable alternative to the noxious was good for the society as a whole. This was the proof that, ideas of the apostles of downsizing and the apologists for the as President Kennedy put it, "A rising tide lifts all boats." low-wage economy. That social compact held despite the differences between I offer the idea of a corporate economy guided by the us and the bumps along the way, and produced a tremendous proven truth that a productive partnership produces greater increase in the standard of living for millions and millions of stability and greater profitability in the long term for compa­ Americans, not just a fortunate fe w. That was the reason that, nies and for the economy as a whole. when things went broke, we fixed them-together. It was I propose an economy made up of companies that give a social compact that produced the strongest economy, the workers tangible, positive incenti ves to produce to their maxi­ largest middle class, and the most successful society the world mum efforts. An economy where workers and other consum­ has ever seen. ers can feel a sense of loyalty to American companies-loy­ Now, however, the stresses of global econOl:nic competi­ alty that trqnslates into the purchase of those companies' tion in the era after the oil shocks of the 1970s, of the new products-because all are contributing to the strengthening technologies, and of the deregulation of the domestic econo- of American society ....

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EIR June 21, 1996 National 67 congressionalCl oseup by Carl Osgood

Dole's Balanced Budget tation Act of 1996." In fact, the bill is lions of Americans who need health Amendment flops part of a British-orchestrated provoca­ insurance reform "should not be held On June 5 and 6, the Senate again tion, designed to set the United States hostage to this extremist, special inter­ failed to pass the Balanced Budget and Russia at one another's throats, in est proposal." Amendment to the Constitution. It was order to forestall Eurasian economic Kennedy's remarks were an effort one of Majority Leader Bob Dole' s (R­ development, or U.S.-Russian cooper­ to advance the Kennedy-Kassebaum Kan.) last officialacts before resigning ation in a number of areas, including health insurance reform bill, which has on June 11, to run for President full setting up a new worldwide financial not been taken up by a Senate-House time. and monetary system. conference committee. The bill has The most focused Democratic op­ Brown claimed that Clinton ad­ been stalled by attempts to add provi­ position to the amendment was over ministration reluctance to move for­ sions to expand MSAs. constitutional concerns. Carl Levin ward with NATO expansion "brought Kennedy took aim at the Golden (Mich.) warned thata Balanced Bud­ back memories of the tragic events of Rule Insurance company, which is by get Amendment to the Constitution World War I!, of both the Soviet inva­ far the largest promoter of the MSA would not work. "I am not prepared sion of Poland and the German in­ idea, and which made $1.6 million in to write into the Constitution language vasion of Poland and other countries contributions to Republicans over the that is more likely to lead to disillu­ of Central Europe." Brown's bill spe­ last five years. "It is no accident that a sionment and constitutional crisis than cifically names Poland, Hungary, and company like Golden Rule favors to a balanced budget." Patty Murray the Czech Republic as eligible for as­ medical savings accounts," he said. (Wash.) warned that "this amendment sistance for transition to NATO mem­ Kennedy said that when Golden Rule will make it impossible for future gen­ bership, and authorizes $60 million for stopped doing business in Vermont erations to determine our country's NATO enlargement assistance. because it didn't want to compete in spending and revenue priorities." She That NATO enlargement is aimed an environment of insurance reform, added that prohibiting government at Russia was made clear by John Mc­ Blue Cross and Blue Shield took over borrowing would make it impossible Cain (R-Ariz.), one of the bill's co­ their policies and found that "one in for the governmentto make capital in­ sponsors. "With the Russian elections four policies included an exemption. vestments and to provide for increased only weeks away," he said, "eastern Whole body parts, like arms, backs, unemployment insurance needs dur­ Europe may again be faced with a breasts, and even skin, were written ing recessions. communist Russia, a Russia which out of coverage. Newborns were ex­ In March 1995, the Senate was one proudly extols the virtues of a failed cluded unless they were bornhealthy ." vote short of passing the amendment. philosophy." Even if Y eltsin wins the Since then, Bob Packwood (R-Ore.), election, he said, "let us not forget that who voted for it, was forced to resign, his is no longer the government of and Ron Wyden (D) was elected to re­ Gaidar, Yavlinsky, Fedorov, and Ko­ place him, making it even less likely zyrev." Maj or Owens defends that it would pass the second time prevailing wage act around. This fact lends credence to On June 6, Rep. Major Owens (D­ Robert Byrd's (D-W.V.) charge that N.Y.) defended the Davis-Bacon Act, the amendment was "little more than which requires the payment of prevail­ a political mirage in a vast, dry desert Kennedy blasts medical ing wages on government construc­ of empty election-year promises." savings accounts tion contracts, against assault from the On June 6, Sen. Edward Kennedy (D­ Conservative Revolution. Owens Mass.) attacked medical savings ac­ noted that the Senate, on May 22, counts (MSAs), which, he said, are a unanimously rejected an attempt to re­ way of "underwriting the health insur­ peal the Davis-Bacon Act. He called Brown introduces ance for the wealthiest individuals at this a "vindication" of the constitu­ NATO expansion act the expense of the average taxpayer." tional system and suggested that the On June 4, Sen. Hank Brown (R­ The cost to taxpayers will be $3 billion House ought to follow the Senate's Colo.) introduced, on behalf of Bob for each 1 million people who leave lead. Dole (R- Kan.) and five other co-spon­ the insurance pool to take MSAs, he Owens attacked the notion that sors, the "NATO Enlargement Facili- said. He added that the hopes of mil- Davis-Bacon is inflationary and adds

68 National EIR June 21, 1996 to the federal deficit. "The actual man rights, non-proliferation, trade, quests in Washington on May 30. wages of construction workers," he and Taiwan pose serious concerns,but . House Ways and Means Commit­ said, are "going down. They are as revoking MFN will not help us address tee Chairman Bill Archer (D-Tex.) much a part of the wage gap and the these problems. By isolating the made clear during floordebate that the wage stagnation in America as any United States from China, we impair bill is aimed squarely at Clinton. He other set of workers." Department of our ability to influence the directions complained that Clinton still hadn't Labor wage surveys "show that the China will take on these important approved the waiver request eight construction workers are paid below questions." days after receiving it, even though, the wages of the average salary for Murkowski suggested that the ad­ legally, the administration has up to 30 workers in similar kinds of jobs in ministration consider permanent ex­ days. "To help the President refocus given localities," he said. tension of MFN, in order to avoid the on the Wisconsin waivers," Archer "It comes as no surprise," Owens yearly ritual of debating the issue. "I said, "we are giving him the opportu­ said, "that many of the most vocifer­ don't think this debate has lowered the nity to personally approve it by signing ous foes of Davis-Bacon come from trade deficit, freed a single dissident, this bill." states that have extremely low wage or prevented the sale of nuclear weap­ In another swipe at President Clin­ determinations which include no ons," he said. ton, Jim Sensenbrenner (R- Wisc.) health or pension benefits. ... The But support among Republicans complained that if the welfare reform same people who want to criticize the for renewal is hardly unanimous. plank of the Contract with America Davis-Bacon prevailing wages also Bereuter said that a privileged resolu­ had been signed into law, "we would are the people who fought against the tion, introduced by Dana Rohrabacher not be standing here today, because minimum wage." He said that those (R-Calif.), disapproving China MFN, there would be no waivers required for who want to repeal Davis-Bacon "are would come to a vote this summer, Wisconsin" to implement its plan. trying to ...wipe out the middle class though probably not before July 3. He Democratic opposition, led by Da­ that is generated through the construc­ warned that Frank Wolf (R-Va.) and vid Obey (D-Wisc.), focused more on tion industry, working people who Nancy Pelosi (D-Calif.), traditionally the bipartisan nature of the debate. work very hard." opposed to MFN for China, have Obey said the bill "is simply part of a vowed to lead an energetic campaign political game to tweak the President against renewal. of the United States." Maxine Waters Senate Foreign Relations Com­ (D-Calif.) said she was "sick and tired mittee Chairman Jesse Helms (R­ of some Democrats and some Republi­ China MFN renewal N.C.) also introduced a resolution of cans alike, using welfare children and gets strong GOP support disapproval, co-sponsored by Connie families as pawns in a political squab­ A number of Congressional Republi­ Mack (R-Fla.), Bob Smith (R-N.H.), ble to try to make voters believe they cans have come out strongly backing and Russell Feingold (D-Wisc.), on are reforming welfare." The plan may President Clinton's decision to renew June 6. be credible, she said, but nobody China's Most Favored Nation (MFN) knows because "we have had no hear­ trade status. House Asia and the Pa­ ings, and the floorjo ckeys on the bill cific Subcommittee Chairman Doug do not have the faintest notion of what Bereuter (R-Neb.) endorsed Clinton's is in this plan." decision in a speech to the National Wisconsin workfare A substitute amendment, offered Association of Manufacturers on May program gets House waiver by Gerald Kleczka (D-Wisc.), allow­ 29, but wamed that "a serious effort The House, on June 6, rushed through ing a 30-day period for public com­ needs to be launched to sustain the a bill to allow the state of Wisconsin ment, was defeated by a vote of 194- President's decision." to bypass the federal waiver process, 223, and the bill was passed by 289- In the Senate, Finance Committee and to begin immediate implementa­ 136. Chairman William Roth (R-Del.) and tion of its "Wisconsin Works" welfare Wisconsin's plan puts recipients Frank Murkowski (R-Alaska) also en­ reform plan. The bill comes on the into subsidized private sector or public dorsed Clinton's decision during a Fi­ heels of President Clinton's endorse­ service jobs which don't have to pay nance Committee hearing on June 6. ment of the plan in his May 18 radio the minimum wage. It doesn't include Roth said, "There is no question that address and Wisconsin Gov. Tommy education or training, and replaces China's conduct on matters such as hu- Thompson's (R) delivery of waiver re- Medicaid with HMOs.

EIR June 21, 1996 National 69 , NationalNews

an article entitled "Money-Laundering paralegals who had legitimately handled the Scandal Could Rock Citibank, Fed." How­ documents; and those of a White House aide ever, EIR raised two central features of the who had worked at the Rose Law Firm. Business executives Salinas-Citibank story which the New York Noticeably absent were any fingerprints Times covers up: the role of the Federal Re­ of Susan Thomases, a close friend and con­ attack Federal Reserve serve, and the fact that drug money was a fidanteof Hillary Clinton, or of Maggie Wil­ At least two prominent businessmen have significant part of what could be a $100 mil­ liams, a top aide to the First Lady. Both recently openly agreed with the position of lion money-laundering operation. Citibank Thomases and Williams were grilled merci­ Sen. Tom Harkin (D-Iowa), that the U.S. has been under direct Federal Reserve con­ lessly by D' Amato's committee as to any Federal Reserve has been unnecessarily sti­ trol since late 199 1; thus, the Fed had to have knowledge they had of the records, and were fling U.S. economic growth because it is too known of the Salinas scheme. virtually accused of having committed per­ worried about inflation, the June 7 New York Citibank is undoubtedly a target in the jury before the committee. Williams was Times reported. Harkin has been holding up probe. The Times article opens: "The in­ specifically accused of having snuck the re­ the renomination hearings of Federal Re­ structions from Citibank's New York head­ cords out of the office of Vincent Foster on serve Board Chairman Alan Greenspan in quarters to clerks at the bank's Mexico City the night of his death. the Senate for the past three months in an office were clear: Ask no questions. Every "There was all this super-heated specu­ attempt to force debate on Fed policy. few weeks throughout 1993, a mysterious lation that these records were carried away in John F. Welch, Jr., chairman of General courier made his way to the 16th floor of the middle of the night from Vince Foster's Electric Corp., said, "We don't see any con­ Citibank's glass-walled headquarters in office by Maggie Williams," Senate minor­ nection between the numbers out there and Mexico City, carrying a cashier's check in ity counsel Richard Ben-Veniste declared what we feel in our business. There is abso­ pesos with a value of $3 million to $5 mil­ June 3. "Well, if she did so, she didn't leave lutely no inflation. There's no pricing power lion. The clerks accepted the checks, which any fingerprints on it, and it would seem at all." Dana G. Mead, chief executive of were made out to a Citibank subsidiary, and pretty odd. The same for Susan Thomases, Tenneco Inc. and chairman of the National converted the proceeds to dollars. Then, the who was questioned closely about her ap­ Association of Manufacturers, said, "I be­ money was wired to Citibank in New York, pearance at the White House at various lieve very strongly that the Fed should be which sent it to accounts in Switzerland. No meetings. And it also indicates that there is leaning more forward toward growth, and not questions asked." no evidence that would contradict her testi­ be so concerned aboutthe threat of inflation." mony that she did not handle those records." On June 7, President Clinton urged the Fed not to raise interest rates. Unfortunately, rather than addressing the decades-long de­ cline in living standards, he claimed that FBI analysis discredits newly released employment figures, which Starr seeks ban again on showed an official increase in employment, D' Amato on Whitewater vindicated his economic program. An FBI fingerprint analysis of Rose Law evidence of his motives Firm documents, found at the White House Whitewater special prosecutor Kenneth last year, has deflated blowhard Sen. AI­ Starr has submitted a motion in limine to fonse D' Amato (D-N.Y.) and his Republi­ exclude evidence of his own political moti­ can cronies on the Senate Whitewater Com­ vation from the next Whitewater-related DOJ admits Citibank mittee. trial in Little Rock. Starr is notorious as a The FBI report said that two of First political appointee in the Justice Department is under investigation Lady Hillary Rodham Clinton's finger­ under ex-President George Bush, and for his Department of Justice public affairs spokes­ prints, and four from the late Vincent Foster, current conflict-of-interestrepresentation of man Carl Stem acknowledged that the de­ were among those found on copies of re­ such clients as the Republican National partment has opened a criminal investigation cords of Mrs. Clinton's legal work for Madi­ Committee. into Raul Salinas's transactions, the June 5 son Guaranty Savings and Loan. This was In the recently concluded trial of Gov. New York Times reported. The investigation no surprise, because it was well known that Jim Guy Tucker and James and Susan Mc­ seeks to determine whether Citibank, or oth­ Mrs. Clinton and Foster had examined the Dougal, Starr submitted a similar in limine ers, violated U.S. laws which prohibit banks records in 1992, in response to newspaper motion. The court ruled that evidence of the from knowingly helping criminals hide illicit inquiries. political motivation of witnesses was al­ earnings. Salinas, the brother of the former The FBI reported that fingerprintson the lowed, but agreed to bar the introduction of President of Mexico, Carlos Salinas, is cur­ documents included those of White House any evidence of Starr's political motivation rently under indictment in Mexico on theft aide Carolyn Huber, who found the long­ for bringing the prosecution-thus severely and murder-conspiracy charges. missing documents on a table in the White limiting the defendants' case. EIR broke the story in its June 7 issue, in House residence last August; those of two Starr's latest motion, for the upcoming

70 National EIR June 21, 1996 Briefly

WILLIAM WELD (R), the Massa­ chusetts governor whose Nazi-like policies would eliminate "useless eat­ ers " had to navigate his way past a trial of Herby Branscum and Robert Hill, the future. In an interview on ABC-TV, ' union picket line June 2, on arriving charges that Branscum and Hill have stated Lamm claimed that "in 16 years, by the year at the Boston Harbor Yacht Club. One that the prosecution is "politically moti­ 2012, the current tax structure, applied to the hundred employees of the Massachu­ vated"; that the government intends to "put revenue anticipated in 20 12, will only fund setts Bay Transit Authority were on the President on trial"; and that the govern­ entitlements and interest on the national hand to denounce Weld's plan to "pri­ ment is trying to "put on trial, vicariously, the debt. No Defense Department, no national vatize" the entire public transit sys­ 1990 campaign and the President himself." parks, no JUdiciary, no Executive branch of tem for the Boston metropolitan area. Starr's officeargues that such arguments government." The blueblood privateer is campaign­ are "highly prejudicial and inflammatory" ing against incumbent Democrat and would "confuse the jury." Therefore, the John Kerry for the U.S. Senate. defendants should be barred from making such allegations, or eliciting any evidence to PRESIDENT CLINTON, during this effect from witnesses. Senate vote highlights his weekly radio address June 8, de­ In the 1988 federal prosecution of Lyn­ scribed the burnings of African­ don LaRouche and his associates, a far more threat to entitlements American churches in the South as a broad-ranging motion in limine was granted. The Senate on May 23 narrowly defeated a "disturbing rash of crimes that hear­ That "Star Chamber" proceeding prevented proposal that would have cut spending on kens back to a dark era in our Nation's LaRouche and his co-defendants from pres­ Social Security, Medicare, Medicaid, and history." The latest burning, on June enting evidence to the jury of their own inno­ other entitlement programs by $679 billion 6 in Charlotte, North Carolina, was cence, and barred evidence of the govern­ over seven years. The proposal, offered by "at least the 30th African-American ment conspiracy which was responsible for John Breaux (D-La.) and John Chafee (R­ church destroyed or damaged by sus­ the prosecution. R.I.), and cosponsored by a bipartisan group picious fire in the South in the past of 22 senators, was defeated by a vote of 53- 18 months." 46. However, Robert Kerrey (D-Neb.) told the May 29 Omaha World Herald that he THE LONGSHOREMEN'S and was surprised at the level of support the plan Warehousemen's Union distributed Hollinger rag applauds received. Kerrey heads the Commission on leaflets May 30 in communities all Entitlement Reform and was a backer of along the West Coast, to oppose port Lamm's Presidential bid the proposal. privatization. Such schemes "dis­ The London Daily Te legraph, the Hollinger At a news conference, Kerrey quoted place family- and community-sup­ Corp.'s propaganda conduit for British In­ Sen. Daniel Moynihan (D-N.Y.), who de­ porting jobs with cut-rate, low-wage telligence, welcomed Colorado cannibal scribed the vote as "the most significant in operations," ILWU President Brian Richard Lamm June 10 as "a breath of fresh the last 65 years" in demonstrating that enti­ McWilliams said. Public ports ac­ air" in the U.S. Presidential race. The pa­ tlement programs no longer are considered count for 15.3 million jobs. per's campaign to destroy President Clinton politically untouchable. Twenty-two Re­ and the United States reached another low in pUblicans and 24 Democrats voted for the THE SUPREME Court upheld on touting the former Colorado governor. proposal. It is based on lowering the Con­ June 3 the right of banks to set credit­ While in office, Lamm rammed through a sumer Price Index, which automatically in­ card terms for customers nationwide state monument to celebrate the cannibalism creases payments made to recipients of So­ based on the rules of permissive states committed by snow-bound survivors of a cial Security, Medicare, and other programs, such as Delaware. The ruling came in failed attempt to cross the Rockies in the five-tenths of I %. It also would have raised Smiley v. Citibank, in which a woman 19th century. the eligibility age for Social Security from had sued Citibank' s credit card opera­ The Hollinger Corp. is pleased by 65 to 70. tion, claiming that the bank's late­ Lamm's recent suggestion that he might run Kerrey introduced an amendment to charge fees violated California con­ for President on Ross Perot's Reform Party allow a degree of Social Security privatiza­ sumer protection laws. ticket. The Daily Te legraph quotes Lamm's tion, by allowing individual private invest­ statements that "the economy of the '90s ments of up to 2% of the Social Security tax. WISCONSIN Democrats retook cannot support the dreams of the '60s," and This proposal got 36 votes. "The 36 votes control of the state Senate, by win­ that the United States now has to "pay its moves us much closer, much faster to the ning a recall election in Racine, Wis­ own way." very, very specific, very tough changes that consin in early June. According to the In a June 9 interview on NBC-TV's will have to be made in entitlement pro­ AFL-CIO's Work in Progress weekly "Meet the Press," Lamm raved that Medi­ grams." He derided the Presidential candi­ report, "labor's efforts played a big care would have to be cut by ten times the dates for arguing over minimum wage, and role" in the ouster of George Petak by amount proposed by President Clinton, in other issues, which, "relative to this, are in­ Democrat Kim Palche. order to make the program "sustainable" for significant," he said.

EIR June 21, 1996 National 71 Editorial

Britishideology isan infectiousdisease

Whether it turns out to be the case that "Mad Cow" British Medical Journal not only failed to denounce disease can be transmitted to humans by eating infected Kevorkian, this monster who advocates that "useless beef, the ban on British beef exports is fully warranted, eaters," i.e., the disabled, be put to death, but it declared because the British have shown that they cannot be him to be a "hero." For this official voice of British trusted to meet international public health standards. medicine, the fact that Kevorkian now openly assists in Even more urgent, however, is the necessity to ban the the suicide of people who are not fatally ill, but merely export of British ideology, and to drive spokesman for have painfully disabling diseases, is considered honor­ that ideology out of office, before they destroy the via­ able and courageous. bility of entire nations. This representative of the British medical commu­ Just as it was the British who intervened in Germany nity also attacks the American Medical Association, for to bring Adolf Hitler to power, so, too, are they attempt­ its consistent opposition to the whole idea of assisted ing to destroy republican government everywhere. A suicide, and because it has condemned Kevorkian's ac­ case in point is their attempt to establish a fascist regime tions in particular. For the British Medical Journal, it is in the United States, through their continuous barrage sufficient that Dr. Death does not charge fees for his of scurrilous attacks on President Clinton, coupled with services in terminating an individual's life, to establish their support of neo-conservatives (more aptly named his credentials. neo-Nazis). Another striking instance of how the British give Austerity measures of the kind being advocated by support to Nazis, is the case of Lamm, who has openly House Speaker Newt Gingrich's Contract with stated that elderly Americans have a duty to die and get America crowd, and by Ross Perot and his supporters, out of the way for the next generation. Lamm appears are the short road to death camps such as Auschwitz. to be in line to become the Presidental candidate of Ross Nazism was, and is, a deadly attack against the sacred­ Perot's Reform Party. He is calling for cuts in Medicare ness of human life, against man created in the living ten times greater than those proposed by President Clin­ image of God. But Nazism was not a German phenom­ ton, and he also wishes to raise the age at which people enon. Rather, it was the deliberate creation of an inter­ would qualify for Social Security benefits. national oligarchy, led by the British oligarchy, and Lamm is supported by the Hollinger Corp.-owned supported by the royal houses of Europe. The British British Daily Te legraph newspaper. In an article on Empire was racist through and through, and before the June 10, Lamm was welcomed as a "breath of fre sh Second World War, the British organized an interna­ air" in the American Presidential race, and it reported, tional pro-euthanasia movement which supported Hit­ hopefully, that Lamm might run for President on Perot' s ler's racism. Reform Party ticket. Today, the British are using every means in their Another case in point of these British-supported power to destroy republican government in the United Nazi policies, is the legislation promoted by Pennsylva­ States. They are also giving support to genocidalists nia' s governor, Tom Ridge. LaRouche Democrats are who are much more blunt about their intentions than currently spearheading a movement to impeach this fas­ were Hitler and his fo llowers. One such is the quintes­ cist, who is trying to impose austerity measures on sential Nazi doctor, Jack Kevorkian; another, is former Pennsylvanians which would deny health care to the Colorado Gov. Richard Lamm. poor and elderly. Kevorkian has been rightly called "Dr. Death" for It is crucial, if humanity itself is to survive, that a his role in so-called "assisted suicide" -which, prop­ quarantine be declared against the British royal family, erly identified, is murder. But on June 8, the prestigious and all those who support them.

72 National EIR June 21, 1996 SEE LAROUCHE ON CAB L E TV

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Journal of Poetry, Science, and Statecraft Publisher of LaRouche)s major theoretical writings

FEATURED in the Summer 1996 issue:

(Homeostatic) Simulation by Lyndon H. LaRouche, Jr.

"Although no mathematical model of economic processes would atte mpt to program the artistic fa ctor in social progress, the mathematician must take into account that potential margin of error in his 'model' which might be introduced by excluding consideration of Classical art fo rms."

Th e Po wer of Great Poetry to Shape Character and Build the Na tion: Dante) Hu mboldt) and Helen Keller, by Muriel Mirak Weiss bach

Peter Abelard: Discoverer of In dividuality in the Feudal Age) by Helga Zepp LaRouche

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